Bulls continue to march on albeit at a slower pace!
Nifty after opening gap up, went on to make a high at 12022, retrieved from there and made a low at 11867.2 before finally closing at 11930.95.
Here are my observations looking at the daily chart of Nifty…
- Nifty hit a crucial resistance zone between 12012.55 -12071.45 where there’s an unfilled gap.
- Although Nifty closed up, the closing was lower than the open which is a bearish candle.
- Nifty is overbought both in terms of price and a short-term oscillator. It has closed up for eight days straight while it has been showing overbought readings for the last seven days.
- Market breadth remains negative where there are more declining stocks than advancing.
- The strange thing to observe is the India Vix is also overbought along with the markets.
All of the above points are suggesting a pullback, may be upto around 11580-1600.
How’s the Nifty Bank doing?
Nifty Bank is flirting its 200 day MA with a negative close today below the average. It must cross 24000 to continues its bullish trend upto 26000. Before that a pullback upto 23000 is not ruled out!
The outlook remains cautiously bullish!
There are no signals as per my Swing Trading Strategy!
Have a great day ahead!