Increased intra day volatility is a sign of distribution, when this volatility comes at the top of a rally. Now, distribution does not get complete in a day or two.
The Nifty is now in some kind of a correction. In my reckoning, the Index needs to close above 6150 to suggest that the correction is over. Corrections are inevitable,
Pi asks "Does the previous high act as resistance?. If a trader is bullish and buys at 5900, why should he suddenly turn bearish at 6350, previous high?" My Notes:
I will be on Bloomberg-Utv on Thursday morning at 9 A.M , and Friday afternoon at 3 P.M. The Nifty needs about 125 points to touch its highest ever levels.
Today morning on Bloomberg-Utv I suggested that Rcom (Reliance Communications) was a buy because of bullish chart patterns. I am giving below the chart which suggests a buying opportunity. Here
Login
Sign Up