NIFTY, is close to previous high levels. There seems to be no much steam left to have a hard push here. There is a likeliness of one more re-test above current high to reach 5200 level resistance. To trade entry here needs NIFTY to reach value close to 5050 levels. Daily MACD lines are strong while MACD Histogram has started on its downhill ride.
On the Broad sector analysis, we find only Consumer Services segment to be Bullish for any trade on the long side. Basic Materials and Financials are reaching bearish divergence levels. How the sectors have stacked up for the past Week and Day is given below.
While Technology Sector leads on the Weekly followed by Financials and weakest being the Consumer Services Sector. Daily shows a different picture with Utilities leading the rally followed by Technology. In considering both Weekly and Daily, it is confirmed that Technology Sector has momentum. But the Charts have a strong bearish divergence. This is a final chance for any leftover longs to get sold off. The Financials which is yet to give any weakness on the charts and shows strength in the Weekly sector gains has some steam left.
Consumer Services sector which is the weakest on the Weekly map and the strongest on the Charts gives another opportunity to go long. Consumer Services Sector is a combination of Food and Drug Retailers, Media, Diamond Jewelers and Hotel Industries in it. Of these, Diamond jewelers and Hotels are yet to have any weakness. So, we have to find trade opportunities in these two Industry categories.
Any negative news is likely to impact the markets very strongly. Be cautious on the front foot to short on emerging weakness.
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