Sectors that are strong

Of the 10 sectors the market is divided into, most of the sectors have retraced bearish divergence on weekly charts. Still few have strength and those are the ones keeping NIFTY on the bullish side. They are Basic Materials, Health care, Consumer Services and Financials.

We have pasted the weekly chart of Basic Materials here. This sector along with Consumer services is the strongest. But, the current bullish move is retracing very strong bearishness here too. Health care has a similar picture. The recent bear moves in all the sectors have taken the steam out. Once all these sectors top out, we will get a very good bear trade set up on the NIFTY. Wait for the great opportunity to short.