The markets are so much bullish nowadays, trading at all time highs, You might have noticed that since March 28th, every 30-40 points kind of dips or intraday pullbacks have been bought aggressively. Now today, due to some overnight newsflow it opened gap down around 30 points just above PDL. It gave that opportunity to buy again today. If we use our common sense in trading, it tells us to buy this 30 point dip. Let me give you an example. You want to buy an Iphone costing around 50K. You have kept an eye on its price. One fine day, they slash the price to lets say 40K. What would you do? Wouldn't you just rush to the store to buy it? This is what professional traders do.
At the open, it is possible that the traders tried to buy this dip. Some time later, it broke the initial low, failed, retested it and failed to move down. This indicated lack of strength from the sellers. Reading the price action like this would allow us to take a long as marked after the confirmation. It worked well. RBI announcement at 2:30 pm today was also another reason for the markets to not move in a direction before the event and remain range bound till that time. If you expect it to remain in some sort of range, then why not buy around range low in an up trend.
After the announcement, there was no fireworks and it continued to remain range bound.