Nifty50 Jun Fut looks very tempting to for shorting. RSI divergence is spotted in Nifty50 Daily charts. Sell for Targets 11763/11597 (spot price). STOP LOSS AT 12060.
nifty will move up till rbi meet i guess.. and also reliance hasnt moved up yet. if it moves the upside can be fast.. 12400 can be achieved..in june i think
chirayu05
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@mklives, Hey... good point. Do you think RELIANCE has that steam in it to fire?
mklives
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@chirayu05, its the only heavy weight now left not to move,, close above 1340 1342 zone can take it to 1380
chirayu05
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@mklives, Did you see the market crack? This is exactly what you expect with a rightly established RSI divergence. It's a small anomaly, you leverage it, make a few quick bucks and get out before the profits fade.
mklives
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@chirayu05, ya banks are stretched for the short term.. reliance still holding around.. midcaps again going down,,
anuj1234
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Good spotting!! The markets seem to have been overbought as all good news has come into the market and everything seems to have been discounted.
chirayu05
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@anuj1234, Yep... similar line of thought when validating the divergence :). Thanks for the input!
anuj1234
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@chirayu05, Nifty is still up by 80 points. Tough for a shorter to stay the trade. Shorting requires a lot of Financial and emotional capital and patience.
chirayu05
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@anuj1234, True. I agree with you on this 100%. Based on my risk absorbing ability and analysis, this trade should be taken by using a strict SL of 12060. That makes the trade about 1:2 risk reward for T1 and 1:3 for T2.
anuj1234
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@chirayu05, Since all the good news has come into the market, it seems to now going into a correction mode. 1st target could be 11200 - the immediate previous low. The RSI divergence still is intact.