Nifty had shown strong negative reversal
amidst the euphoria and optimism. Also this time there is no strong logical
reasoning for this serious selloff but to put blame on depreciating currency
and rising Crude prices.
News will come out after the equity market
movement has happened to justify the reasoning for selloff but USDINR has been
depreciating for many weeks now and we forecasted it few months back itself.
So do not rely on the news flow which will
only provide the satisfaction but not help in taking a trading decision:
Following was published in “The Financial waves short term update”
Nifty daily chart:
Many were expecting a euphoric rise but we
had our concerns given cluster of channel resistance. The same was taken out
momentarily again resulting a BULL trap like that seen during February 2018.
The outcome is also similar to that seen in February so far.
So, there is high possibility that a medium
term top might have formed? Many are stuck on the long side at higher levels as
Nifty didn’t provide much time and this is classic way in which reversals can
happen.
Following was published in our daily
research report –
Nifty opened on a flat note near 11598
but failed to sustain near the high and prices eventually moved towards a low
near 11496. Heavy weight stocks like Reliance, Bajaj Finance that showed
selling on 3rd September showed some pullback whereas the other
stocks participated on downside. This seems like a classical rotational selloff
which is opposite to that we were seeing on the upside.
Moving average difference Indicator: At times
non bounded indicators provide subtle changes or divergences which the bounded
indicators like RSI might not able to amplify. We can clearly see that MACD
indicator is now crossing below the signal line. This is another reason why we
think that the overall trend is probably changing.
As shown on hourly chart, (shown in
actual research report)…..
In
short, Nifty has continued it’s down move and further negative close below
11500 will be sign of concern that a bigger degree correction has started. As
long as …… is intact on upside use any rallies as shorting opportunity. Let us
see if the rotational selling pressure can continue today as well …………..
Happened:
Nifty indeed formed the biggest down bar in today’s session since the beginning
of the downtrend. This suggests there is lack of buying and on-going square off
of long positions.
It is time to change
the strategy from buy on dips to sell on rallies. Avoid catching a low and it is time
to stay in direction of the trend. We might be just beginning the bigger degree
correction which might take majority by surprise. Are you ready!!!
Get
access to “The Financial Wave short term
update” and see yourself where is Nifty headed from here. Also see the next Multibagger stock
amidst this selling pressure in our “Multibagger research report”. A very big trend is about to start, act now here
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