Nifty continued to retain its strength as stock & sector rotation fuels the ongoing momentum - Tradebulls Securities
Nifty
continued to retain its strength as stock & sector rotation fuels the ongoing momentum. Since last 5 weeks it hasmanaged to retain its lower range above its 5 DEMA level despite an overbought reading on its trend strengthindicators.Onthe price scale the occurrence of a reversal is awaited & hence retaining longs & avoiding shorts still remains aprudentstrategy.Its early to decide on a probable top & hence a confirmation on the reversal side would be waitedfor buildinganyfresh shorts. Only a breakdown below 17780 would signal weakness for a corrective action towards its next critical supportzone while the ongoing momentum could push its towards 18060 to 18130 zone. With both trend strengthindicatorsplacedwithin their extreme overbought state building breakout trades should be avoided as momentumreversing couldbeswift&lethal. It’s ideal to remain cautious & advisable to deploy a hedge against ones existing longs with a trading stopbelow17780.
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