Nifty spot bounced of from 3rd Standard deviation extreme band signs of caution for positional shorts out there as it historically indicates a kind of oversold markets with a greater odds of a bounce back in the short to medium term. Lack of sellers confidence is an opportunity to fade those sellers in a very short term. Current extreme indications come around -7.4.
There might be too many late laggard shorts in the system. Any flush out of such shorts are the real sign of tide is turning on the upper side. However, playing on the upper side is still tougher if you are naked option player as even if you are right with your directional view you might lose on the volatility. In that case it is not recommended to play with Out of the money options. It is better to stick to At the money strike with very short-term longs rather than getting caught with the volatility crush! (if any)
Bank Nifty also showing similar signs of bounce back from extreme indication zone.