==>> Markets bounces back on short covering

Markets fell in its early hours. For most of the day markets remained down by almost 2.75%. But in the late hours markets recovered sharply and surged up to its previous low. Sensex closed down by just 54 points after recovering nearly 300 points from its low. Nifty close down by 14 points. Nifty made a low of 4359 but due to strong IIP data and short covering in the markets, Nifty surged to close at 4464. Once again Nifty managed to closed above 4440 levels. In the last 3 days Nifty has some how managed to close above 4400 levels after making a low below the same. on each trading day. 4400 levels in Nifty seems to be a good support. At these levels markets are attracting some serious buyers and the short are been cut off. As seen earlier also that the 4400-4425 levels have been proved to be a good support and resistance area.
Yesterday the pattern that had been made in the Nifty chart is "DOJI" pattern. And it was made at the lower levels, after the 3 days falling markets. Doji pattern gives a smaller signal that the rally or the fall can come to a hault, but it also depends upon the next days trading pattern also. Today a Dragon Fly Doji pattern is made. It means that the sellers still loom in the markets but the selling had been absorbed by some Bulls too, that pushed the Nifty back ot its Previous close. This pattern at the bottom may prove that the bottom has been made, but the future trade will only give the confirmation. We might see some temporary relief.
Huge buying in the real estate stocks and some short coveing in the frontline stocks pulled back the markets from its low.