Hidden bearish divergence spotted. Selling should resume again.

We were bullish on the overall market from Thursday 22nd Dec close but anticipated it only as a short term pullback. On Friday 23rd NIFTY pulled back indeed but failed to keep up the momentum and closed only 7 points above. Near the closing of the day we spotted a hidden bearish divergence between NIFTY and the smart money flow. Accordingly we closed the bullish hedge and reversed our position by selling NIFTY futures at 7996 and selling 7900 puts at 1:1.6 ratio. The volume in entire previous week was thinner and in the last week of the year we expect not much REAL activities (by smart money) due to holiday mood. Therefore any major turnaround on the upside may not come and a chance of more consolidation is prominent.

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

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