Nifty Technical Analysis

Published: Wed, 10/28/20

Dear ,

Its been a rough month for Nifty after the smart rally in the first week. A repeat of September. What has worked though has been having the right stock specific or sector calls for this time period. The strength in particular sectors like banks and midcaps however lead to an inter market divergence between Nifty and the other indices where Nifty did not confirm the new highs in the others. That is the discussion today. Apart from that the US pre election pressures and the second wave in US and Europe from Covid have markets concerned. My fear is whether India will go down the same path with a lag. I am told not but fingers are crossed. The correction should remain a pullback within a longer term up trend remains my view.

Rohit Srivastava

The Truth About the Markets

Inter market divergences can precede market turns, till the divergence is broken and we get a lead signal from one of the markets to drive the other. So Nifty rallied to new highs above the August top but Midcaps did not follow. They should have. But now in the short term as the pink line shows the new highs in the Midcap index [and bank nifty] above the Oct 12 high have not been confirmed by the Nifty. This short term divergence is a negative divergence till we surpass 12022. This keeps open the near term risk of a correction in Nifty.

The Best In Market Analysis is now all in one place with the

Indiacharts App

Download and get started

Every asset class from Nifty to Gold

Real Time notifications on Updates

Daily video updates

DownLoad from PlayStore

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Rohit Srivastava
www.indiacharts.com
For accurate market analysis. Technical analysis is a study of past data to assess future probable outcomes. It is our endeavor to discuss high probability set ups for traders and investors in good faith. However this is not a solicitation to buy or sell stocks futures or options or any security. Trading in any financial market should be done with sound knowledge and the help of a qualified investment adviser. Stocks based on the Elliott wave model are based on the Fibonacci fractal of the market and momentum indicators, Levels are based on Fibonacci maths and are only indicative of what the mathematical model throws up. Readers may download the free Elliott Wave Calculator to do it themselves. This is not a research report. We are not investment advisors This is not a recommendation to buy/sell.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Value Wave Stocks discusses the short term trading set ups that we use while taking our trading decisions. Value wave Investments. discusses the long term set ups that we use while taking our investment decisions. We may have holdings in these stocks and are interested in these opinions. This is not the only reason considered while taking our actions. Kindly take the help of a qualified investment advisor before trading. We have active open long and short positions in the futures/options/stock/commodity/currency markets at any point of time. The opinions here are for your education and understanding only of how we identify stocks to trade/invest in. We change our opinion daily and even hourly. Any actions taken by you are at your own understanding and risk. We do not offer personalised advise or research of any kind.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
You have received this mail because you signed up for it on our website and agree to our terms and conditions and privacy policy listed there. If not, you may unsubscribe with the link below at any time.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Please do not reply to this message. email to indiacharts@gmail.com