With an up close today on NIFTY, it confirms the bullish divergence on the daily charts. But, there are many issues to be noted here. Volumes have been falling in the past 2 days, yesterday with a down close and today a reversal, this shows there is uncertainty at least for the immediate session next.
Hourly charts have already traded long on trend following methods. Now, what is the strength of the ensuing bullishness on the hourly?
Our 10 stock India King's Index shows more gains that the NIFTY or SENSEX, this ensures that the leaders are in tune for the rally. How long can they pull it up? The next good resistance is at 5630 levels, if NIFTY manages to clear this with good volumes, there is a possibility to reach 5750, which is sure to pose a strong resistance to the move upwards.
TELECOM and INDUSTRIAL sectors have given strong performance to pull the index up, among them INDUSTRIALS are the leaders. The overall INDUSTRIAL Sector has registered 2.10% gains, while its mini counterpart, the LIFE INDUSTRIAL Index, which is again a 10 stock mini index of the sector shows 3.28% gains. Even here the leaders are showing power to lead higher.
Day trade section will see lesser trade signals as change of direction will not give more weight on the strength of the direction to follow. It is better to wait and get a high probability winning trade, than to fish in shallow waters and loose both confidence and the energy expended.
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