Index has hit major resistance and has started it's retracement. Weekly charts have started showing weakness. Daily charts have multiple bearish divergence on all indicators. Nifty heat map has closed bearish by 78% on daily and 48% by weekly results. For the first time since the past 3 months, both daily and weekly have given same results.
Those trading on intra day charts can short nifty futures at 4590 levels for a target of 4100-3900 levels.
Report on our open positions:
Cipla: Stock has almost reached our target levels. Both Weekly and Daily charts have turned very strong, though stop is yet to move up. We are exiting 50% of our position on target and trail the balance till there is considerable weakness on the charts.
Bharti: Stock is trading in range, as weekly charts have strength, there is a very high likelihood of the stock re-testing previous high or exceeding it. Stop will be the same for the current week.
Wipro: Though the stock came close to our target levels, it was not able to reach it. Whereas it gave a lower close on the day of nearing target, giving the highest high closing in the current up move. But, both weekly and daily charts have retraced very strong weakness with macd lines giving divergence on Daily along with a force index bearish divergence on Weekly. Daily macd lines have turned down on Friday. We are closing our position below Friday low of 405.20. If market rallies from here, further views will be presented on day-to-day basis.
Happy trading.
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