Nifty opened gap up and stayed there only for rest of the day thus not giving any trading opportunity during the day. One feature about the todays trading is it opened above 5000 and stayed there whole throught the day. One feature which should be noted is that the rise today was also on lower volumes that that of friday. for the last week onwards when ever nifty is raising it is raising on very low volumes the same is dipected in the chart below. The reduction in volumes on every rise is a indication that the current strength lacs strength. So in my view it appears that the current move lacs strenght and it is for me appears to be a dead cat bounce rather than a bullish break out. the volumes are suggesting that when ever it corrects it will be a big correction. So bears pleast wait patiently as patience is going to pay in a big way.
it may be noted that GMMA is clearly indicating that the short term MA are above the long term MA indicating that as of now bulls appear to be strong. but other indicators as of now are pointing towards the other end. One of the strongest indicator of strength is DMI is moving down which is clearly showing that bulls lack strength. so all longs should be on very stright stop loss.
M.Sri Mahidar
Trend is friend.
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