NIFTY showed high strength towards close and has given a 52 Week high again. On the volume side, it is flat. Apart from Bank Nifty and Nifty Junior which has gained considerably other indices have stayed flat, while Nifty junior has taken a strong beating with a close to 12% fall in volume.
At a new 52 week high, NIFTY has managed to get the MACD Histogram above zero. But, this gives a very strong bearish divergence on both MACD Lines and MACD Histogram. With 8 continuous weeks of higher high closing, will this week too follow suit or will there be a retracement? It is a wait & watch scenario as of now.
The NIFTY has marched past its immediate resistance, closing just below 5370. The present resistance area is a band of 5370-5390. This zone is very crucial for NIFTY. Today's high on NIFTY has recorded bearish divergence of MACD Lines on the Daily charts too. So, long trades need more caution now.
TELECOM Sector bounced back with a vengeance today. BHARTI which was due for long exit below Thursday's low was not triggered. RCOM too was strong today. IDEA has gone into value zone activating buy. Buy above 65.25 or on after MACD Histogram uptick on daily.
All our stock calls of previous post have got triggered long. RALLIS has closed up and with it SUNDARAM FASTENERS too.
With the Hospitals Industry being the big loser today, there is opportunity for long trades in FORTIS, wait for previous low to be breached & then trade long. Detergents Industry group registered highest gains today with an above 6% gain on the index. NIRMA, has registered a strong move up today, but charts do not favor buy signal at present.
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