Yesterday's big fall in NIFTY - anticipated
- Arup Nag
- Nov 2, 2016
- 1 min read
3rd November 2016
In my previous blog I was anticipating a continuing downtrend based on the Smart Money Tracker (SMT) slope and it happened quite quickly and drastically. The market closed more than 100 points below to 5014. Below is the updated chart this morning.
As we can see with the two opposite direction lines plotted, there is a bullish divergence forming between the market movement and the SMT. Probably the market is entering into an over corrected territory and bounce back from this level. A very good support region exists around 8480 level.
The most interesting part of this indicator is that no price action is taken into consideration here and it is solely based on the trading volumes in the NIFTY options and futures markets. Still it is nicely correlating (so far) with the overall price and giving us the actual hidden picture underlying.
Tags: hidden divergence, custom indicator, divergence, proprietary trading, futures, trading, smart money tracker, smart money, nifty, indian stock market, forecasting, regular divergence, derivatives, finance, prediction, options, market analysis