Nifty has been trading amazingly well since last months, after a long 1 month upward move it is on the important level of resistance .
If we look at the RSI on the hourly chart it looks like that the RSI is on the multiple negative divergence level .
Nifty has broken its nearest support level of hourly chart which it was trying to protect since last 7 days .
Also as mentioned in the chart in past 1 month it had made a clear upward diametric pattern which looks like on the verge of completion and it will be confirmed, once nifty moves below the 11850 area and in a lesser time than it has taken to mover from the level of 11850 to 12000. And at this level the upward channel will also break on the downside which has given an amazing support to this upward move .
Also the Weekly candle has made a Shooting star formation and that to at such an important resistance level, it is a crucial sign of concern.
Also MOODY's credit agency has reduced the rating of India from stable to negative , which is also a b=negative indication foe the Indian markets.
so, as the market indicators and the price pattern and the current market scenario is suggesting that it is the time to be cautious in the market , and wait for the correct timing for get into the markets instead for taking a trade forcefully.
If we look at the RSI on the hourly chart it looks like that the RSI is on the multiple negative divergence level .
Nifty has broken its nearest support level of hourly chart which it was trying to protect since last 7 days .
Also as mentioned in the chart in past 1 month it had made a clear upward diametric pattern which looks like on the verge of completion and it will be confirmed, once nifty moves below the 11850 area and in a lesser time than it has taken to mover from the level of 11850 to 12000. And at this level the upward channel will also break on the downside which has given an amazing support to this upward move .
Also the Weekly candle has made a Shooting star formation and that to at such an important resistance level, it is a crucial sign of concern.
Also MOODY's credit agency has reduced the rating of India from stable to negative , which is also a b=negative indication foe the Indian markets.
so, as the market indicators and the price pattern and the current market scenario is suggesting that it is the time to be cautious in the market , and wait for the correct timing for get into the markets instead for taking a trade forcefully.
Comment:
Also it cannot go without saying that as the nifty has taken support at the mentioned support area and has given a rise up from that area , so we have to flexible for the upward break of resistance level also ,also bank nifty has out performed nifty with a very huge margin today , So be flexible for both the side of market.