NIFTY moved as per our EOD Analysis and Opening bell; on 11/12/12 our observation was " NIFTY was trading below today's NP-SAR although it was above developing SAR and it closed above tomorrow's level of NP-SAR. This is an early indication of developing weakness in NIFTY."
Now what next? Let's try to find out...
NIFTY is trading well below NP-SAR and 5 EMA. It is seen that triggering of NP-SAR gives atleast 50 points most of the time and we got 50 points today itself. Now, we may hold our short for immediate target of 5830/5805/5790.
But is that all? I think no. If we look at NIFTY chart carefully, rounding top is developing which is a pretty good reversal sign. A close below purple line will be triggering of immediate reversal. Although it is too early to say that reversal is on way but, we may consider it a possibility; ofcourse developing price pattern will confirm our possibility. The best thing that we can do trail our SL according to NP-SAR.
MacD is about to give Sell Cross and Stochastic is hinting towards downward movement. RSI is coming down from OB zone.
We should stay short and keep booking profit at regular interval and keep our levels ready.
Wish you happy trading !!
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