Nifty is at 7% gain for the week, but our New High/New Low index is showing more bearishness. Friday's market activity had 29 new price lows and one New price high showing that bearish sentiment is still very strong. Few industry groups are adding strength in the financial sector. Fertilizers are doing well along with Auto LCV/HCV's.
Market averages have closed with an uptick on the MACD histogram as we had anticipated to be for this week. But, on the daily charts the room left for Nifty to move up. 5200 on Nifty is a strong resistance and it is not far away front the Friday's close. With robust gains on Friday, stop losses for long trades on Nifty are likely to be far below which would not give room for some realistic reward to risk ratios. Similarly many stocks that have bullish divergences on their weekly charts have move up for better and are close to their resistance levels.
Though there are chances for the market to move up from here, it would be advisable to wait for a good opportunity to trade in, which has more strength built into it with a high reward for the risk we would like to expose ourselves going into the trade.
Market averages have closed with an uptick on the MACD histogram as we had anticipated to be for this week. But, on the daily charts the room left for Nifty to move up. 5200 on Nifty is a strong resistance and it is not far away front the Friday's close. With robust gains on Friday, stop losses for long trades on Nifty are likely to be far below which would not give room for some realistic reward to risk ratios. Similarly many stocks that have bullish divergences on their weekly charts have move up for better and are close to their resistance levels.
Though there are chances for the market to move up from here, it would be advisable to wait for a good opportunity to trade in, which has more strength built into it with a high reward for the risk we would like to expose ourselves going into the trade.
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