Nifty - Divergence continues . . .

The Nifty opened with a good lead today but could not sustain and in fact closed lower. Conquering 5200 seems a heavy task for the Nifty. Moreover my observation has been that while Nifty is touching its recent highs , most of the frontline stocks are not! This itself suggests extreme caution to the trader.

On the daily charts, there is a small inverted hammer formation while the RSI remains in negative divergence . . .

The daily charts suggests a support of 5000 Nifty while intraday charts (not shown here) suggest weakness on close below 5050.. . .



While individual stocks may be positive, traders may reduce their exposure keeping in mind the RSI divergence ...

Be careful friends,

CA Rajiv D Khatlawala
Valuetrade Academy Pvt Ltd.