Long awaited correction happened. NIFTY weakness to remain.
As forecasted yesterday, the bearish divergence spotted between NIFTY and SMT caused hammering with high volume and we gained a nice 85 points on short NIFTY. In the absence of any fresh bullish bias this weakness is expected to continue until the scenario changes.
Carefully looking at the chart below and particularly paying attention to the consolidating area in recent past (circled) we can spot a nice anomaly which was already indicating the weakness we observed yesterday. The price action was with a clear bullish tone whereas both the indicators didn't support it much and were tilted to the downside. This is the indication of slow distribution by the smart players in the market, trapping the retail investors at higher levels (8400-8450 area).
