Markets today took another tight rope walk, as indicated it faced stiff resistance at 5200. The Index managed to close positive into the SWEET zone between both EMA's. Daily charts are going into a tight weave of prices. What is the direction, will it go up or down??? Probably up, but downside has more prominence.
Hourly charts have shown trendiness from the 2nd bar today. We use a system to rate the trend and signal to trade the indices. Our rating system has given a buy signal on the closing bar of the day. We do not boast of a system which is 90% accurate, but have a very strong real time experience of making above average gains in the long run by using this system.
As per our system hourly chart is in buy signal above 5182.10 on NIFTY (Spot), the values of NIFTY Future are 5183.30. Our system rates the combined trendiness of the constituent stocks and gives signals to either trade short or long only if more than 50% of the stocks in the constituent list is trending. Along with this a few proprietary indicators are used to find the signals.
This is a trailing system with stop-and-reverse mechanism, and hence needs signal rating analysis for every bar. We will make it a point to update the signals every hour or at the most when the signal changes. The stop loss for this trade is 5157, which is slightly below the slow EMA.
Almost all the Sectors registered gains today except for TELECOM, which has given back 0.30% on its Index. BHARTI & TATACOM have given new lows again. Short trade in BHARTI has gained further momentum. Every stock in this Industry group is strongly bearish, except for TULIP.
The top gaining Sector today was FINANCIAL with a 2.12% gain followed by CONSUMER SERVICES with an above 2.06% gains. Leasing Hire purchase and Equity Investments Industry were the stars in the FINANCIAL Sector. Diamond and Media Industry groups performed strong in the CONSUMER SERVICES Sector. ZEEL has gone neutral after the strong recovery it has made from the current bear move; this has lifted gains in the Media Industry. TITAN has given a new high today adding more strength to the already strong Industry chart.
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