Nifty today surprised every body and moved up, but the rise of nifty was on lower volumes indicating that the rise was merely on account of short covering rather than buying. it can be seen from the charty below that nifty has been rasing for the last four days on very less volumes and with every rise the volumes are decreasing indicating that the current up move lacs strength. It can also be seen from the chart that the MACD histogram is also showing weakness as it has not moved above the trigger line. Nifty is just placed at the 15 day low EMA and any move above it would indicate that the the trend might have reversed for the better. It may also be noted the the 61.8% retracement levels is placed at 4935 and any breach of the same has chances of taking nifty near 5000 levels. if nifty reverses wait for nifty to go below 4825 only then only try to short as this indicates the the current uptrend has reversed. It should be closely watched whether nifty moves above 4925 tomorrow as any failure to move above that levels has chances of taking nifty towards 4800.
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