Nifty Again Diverging!Market has tried to move up today but the momentum has slightly weakened. Hence, today’s candle in NSE:NIFTY has given a hint of intraday trend reversal. So today's candle in Nifty is again a Divergent Candle.
Now, the downside support is at 25044. If this breaks, then next support is at 24877. And if that also breaks, then 24750 is the next level – which will act as Stoploss for all short-term positions.
Talking about resistance, 25125 is an intraday resistance. If this level is crossed, then heavy short covering can be seen which can directly take Nifty to 25500.
So if we connect all the points – F&O data, OI interest and technicals – the trend is still bullish but a little pullback is required. Also, I can say that we may see a major upside move on Thursday, on the weekly expiry – from any one of the supports mentioned above.
In NSE:BANKNIFTY , the required pullback seems to be done. Hence, it looks better placed for taking positions. A good move can be seen very soon.
Its intraday support is at 56220. Resistance is at 56795. If this resistance breaks, then a strong move may follow.
If we talk about another index, special attention should be given to Nifty Midcap. Momentum is building there. Stocks like NSE:INFIBEAM and NSE:INDIAMART may give good moves tomorrow. So keep an eye.
Talking about industries, tiles-making stocks like NSE:CERA are getting ready.
And coming to sector rotation, a big rally can be seen in the #Sugar sector.
One more thing – you need to keep your stop-losses tight. Many people are holding positions using high margin, which is a big risk. Institutional traders take advantage of this. As I’ve mentioned earlier, a shakeout is still pending in the market. So manage your positions well. Keep checking daily. Keep trailing your SLs.
That’s all for today.
Take care. Have a profitable tomorrow!
