NIFTY gives thumbs down

Daily chart of NIFTY gives a break after reaching 5450 resistance. MACD and histogram divergence checks in giving back all the previous day's gains to close negative. Daily charts continue with bullish trend but with weakness. Value zone being at 5322-5271 there is all likeliness of NIFTY reaching into value zone which also rule as a congestion area.

Most of the heavy weights on the index have closed weak today except for few like LT, Relcap, BPCL etc., which have some strength.

Hourly charts which opened strong were not able to move past opening highs. NIFTY gave lower low with every passing hour to finally close signaling bearishness. Though MACD managed to give a new peak at the highs, histogram did not follow through. Final closing hour gives a new lower drift below zero. Our long position which gathered strong gains gave back all of it turning negative on closing.

Hourly NIFTY chart has given a sell signal, close long below 5376 and trade short. Stop is at 5418.50, add on to be done with an increment of 10.75 points lower with every entry. As the market closes at the lowest, any overnight negative sentiment on the global indices will give a gap down opening on the next session. This will add to losses on the long position.

Hourly NIFTY has a 60% trendiness which adds strength to the ensuing bearishness. We just follow the trend as it progresses.