Cautious on NIFTY. Profit booking may begin.

On Thursday 12th Jan, NIFTY moved ahead in a firm style and closed 27 points higher to 4807. However the SMT on both daily and monthly cycles did not support this up move but remained almost constant (chart below). Also, both the FII and DIIs were net sellers in the market yesterday indicating some distributions going around. Therefore a reversal is anticipated in NIFTY which could be a deep one or a minor correction, depending upon what kind divergence is generated after a few upcoming session.

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