On October 21, Nifty witnessed a strong gap-up opening following its global peers and traded near 12,000-levels in the first half of the trading session.

Later in the afternoon session, the market slipped into the red and a sharp decline dragged Nifty below 11,950.

In the last hour, the market recovered from the day’s low point which helped the advance-decline ratio to close in the favour of advancers.

As the market is approaching 12,000 mark, and with just 430 points away from its lifetime high, volatility will tighten its grip and we can witness a high wave candle which normally swings both ways.

The benchmark index has almost retraced 100 percent from its bearish engulfing candle formed on October 15.

When such a strong red candle pattern gets failed, it strongly confirms that the 'buy on dips' scenario is likely to continue.

All up-moves will keep the market in a defined range and the market will remain vulnerable to sell off at higher levels.