Yesterday's upmove in NIFTY warrants more bearishness ahead
- Arup Nag
- Nov 23, 2016
- 1 min read
As we have been expecting an upmove in NIFTY for last few days (due to a continuing bullish divergence reported in my previous posts) it finally happened yesterday (22.11.2016). NIFTY closed 73 points up at 8002. After such a prolonged 6 days of downslide a pullback rally was inevitable. However, the question is will this rally suatain? Let us have a look at the updated chart with our Smart Money Tracker plotted onto it.
We can see here that NIFTY could not close above Friday's close (pointed with down sloping line) which was the last wave peak whereas the SMT value for yesterday was higher than that of Friday (up sloping line). This is an indication of hidden divergence being formed and signalling more bearish pressure ahead. Further decline and continuation of the previous downtrend may resume immediately or within a few days if the hidden divergence continues to be present there.
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