Correction on the NIFTY at the closing hours has given an equally high range today in comparison to yesterdays range. Low volumes on NIFTY very clearly showed us that there is not much steam in the present up move. But, there is another lesson today. Even the fall did not increase volume, what does this say now? Fall is not likely to be a big one. Well it is ringing bells all around loudly to call everyone's attention to the beautiful trade that is going to come on the long side after this correction. Be ready to get filled at the right time.
This trade has high probabilities on the winning side does not mean that we risk more than what our trading system permits us. Always stick to your rules, selecting these types of sure shot winners will boost system performance as well as increase your confidence manifold. This will in turn make us psychologically tuned to market moves, to take better risk at good times. It will become second nature to trade, which is the ultimate requirement, while most of the people who are in the markets do it as second guessing.
NIFTY has a very strong support at 5215-5180 levels; it is from these levels we can see a bounce. As the Daily MACD histogram is nearing zero levels, there are more chances for it to penetrate ground zero. That is another confirmation that the next up move is the last move on the bullish side and we have to be prepared on forelegs to make a 'U' just as the opportunity opens its doors for the great short trade on NIFTY. We say that the short trade is great because, Weekly charts have a very strong bearish divergence, the present New Highs that the NIFTY is making is adding more fuel to the already spreading bearish fire on NIFTY.
SECTORS TODAY
CONSUMER SERVICES is the only sector to close positive today while all the rest closed negative. A beautiful correction was lead by the TECHNOLOGY sector today.
INDIAN HOTELS and HOTEL LEELA performed well, HOTEL industry group is already retracing bearish divergence on weekly charts and INDIAN Hotels mirrors the same. The stocks here are in the final leg of their bull moves, while still not shown trend reversal signals, buying opportunity is not available at present.
TECHNOLOGY Sector took a big beating today with both Computer Software and Computer Software Training Industry groups showing the highest weakness in today's market. Computer Software Training Industry group chart has taken to bearishness with any divergence; this is a point to note. It took a deep fall in October and from there it has gone sideways, the same is reflected in both the leaders of this Industry, EDUCOMP and APTECH.
The Daily chart of Computer software Industry is retracing bullish divergence on MACD lines; this is a very strong indicator and if weekly also shows strength, there is likely to be a rally again to value zone. Most of the stocks in this sector has had a big run up last week and is cooling down now. Watch this Industry for opportunities.
Pesticides and Agrochemicals Industry group has registered the highest gains today by increasing more that 3%. Our RALLIS stock is marching ahead in the bearish market. Hold on to this position with same stop.
Plantations Industry has registered 2nd largest gains today, this sector has more steam left in it, and there are good chances for an above 5% gains from present levels. MCLEOD RUSSEL has gained closed to 20% from its buy at 237, and has more territory to capture.
The Sector Index and Industry group Index values for today is attached.
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