As per yesterday's EOD analysis, NIFTY opened strong only to be sold off at high. We cautioned our readers about profit booking at higher level. In the last hour NIFTY recovered well from lower level. So, is today's fall early indication of a larger correction?
Let's find out the answer...
Today during the fall, 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.
Presence of negative divergence is not supporting new high in NIFTY as of now and after fall of nearly 100 points lower T/F indicators are not oversold.
All these indicate sell on rise. If we go as per fibo level of today's fall, around 5930 would be good level to short again with small SL. OI suggests that 5800 is good enough support in NIFTY. So, 5830/5810 should be profit booking zone.
On the other hand above 5930, NIFTY may move for new high.
Day closing below 5830 may be considered weak. Also, 5830 is the lecel where red line exists.
Wish you happy trading !!
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