Nifty gave back the entire ceasefire rally in 3 sessions. what does that actually tell us about the market structure right now?

The India-Pakistan ceasefire was announced Friday evening. Monday opened with a massive gap up. And by Tuesday afternoon, Nifty was back below pre-ceasefire levels.

This is textbook event-driven pricing but most retail traders still traded this wrong in both directions.

What actually happened:

The gap up on Monday opened at resistance that was already overhead. There was no fresh demand. It was purely euphoria buying from people who missed the Friday move. Smart money had already positioned before the news broke.

By the first 30 mins, the gap was already fading. The institutional selling started immediately into retail buying.

Today the Nifty Bank took the bigger hit. When the ceasefire premium starts unwinding, banking stocks tend to lead the correction because they had disproportionate FII allocation going in.

What this means going forward:

Markets right now are not in a trend. They are in range compression with event-driven spikes that fade fast. Trading the spikes both ways requires very clean entries and tight stops. Holding through these events with positional trades is not a great idea right now.

Is anyone else tracking this pattern or do you think the ceasefire news still has unpriced upside that the market hasn't absorbed yet?