Sometimes we do get hit on the wrong side of the market and this morning's open was painful to all the NF shorts from yesterday.
However if you had held the BankNifty longs then the pain would have been that much lesser.
A loss is a loss and needs to be taken quickly and there was no point holding the shorts with a market which was up 40 points at the open.
I've seen these kind of days when the NF and the BN are in opposite directions in terms of OrderFlow. It tells us that not all is right with the market and people are positioned in opposite directions.
The fact remained that post the open, the marked did not make much head ways and infact stayed below vwap/ dpoc all morning.
That was a clue that longs were not there in the market and the market would follow the path of least resistance which would be downwards in today's case.
IB Low/ Value low and PDL all confirmed the sell signal and the NF went to hit 3IB at 4850 levels. The move helped erase all the loss of the open.
Meantime the BankNifty was also a sell and one it broke IB low there was no stopping.
Overall a decent day after a nasty open.