There was a broad based pull back rally today, many sectors reached above 1% gains. FINANCIALS lead the rally followed by ENERGY and INDUSTRIALS. When the broad market is weak, what is this rally signifying. SELL AT HIGHER LEVELS. Either there is a strong bear move in the offing or the market is likely to settle into a broad based sideways move.
TECHNOLOGY sector lacked support and was the weakest today losing above 1% on its index. Patterns show that the sideways range is likely to continue. When the consolidation hits a big range, there is possibility of considerable gains on the intraday charts.
Longer timeframes like the monthly charts are clearly showing sideways patterns on the NIFTY. Without the weekly charts forming a bullish divergence there is no chance for any good bullish moves. Daily chart has closed below EMA even today, with a very low price range there was good pick up in volumes.
Intraday shorts on NIFTY have locked close to 80 points in gains from 5329. As charts have started to tighten, there is a possibility of reversal.
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