Yet another higher high which gets the market into a level of overbought it has not seen since 2007. Watch this market. It is very stretched to the upside from a technical point of view.
The Nifty is pushing above the upper Bollinger line now, the Slow Stochastic is crossing well above overbought and the RMI and the RSI are above overbought. All good reasons to expect a correction or consolidation.
As it stand this market looks ripe for a correction and better levels to buy, particularly for longer term players.
That said the Parabolic-SAR, the dots below the chart action, are nicely bullish so the market is soundly underpinned from a technical perspective. The MACD lines as you can see opening and moving to the upside.
Only seldom do markets move much above or below the Bollinger lines. It is generally wise to expect the market to be restrained to the downside or upside in this case. Have a look back on this chart and you will see how rare moves outside the Bollinger bands are.
Check out the speed resistance lines on the second chart which have been acting as overhead resistance. This line has now broken.
INTRADAY VIEWS FOR NIFTY :-
BUY ABV 5862 SL.5833 TGT 5867 5889
SHORT BLW 5860 SL.5892 TGT 5834 5820
" TATA STEEL '
AGAIN I BULLISH ON THIS STOCK ABV 606
"MUST TRADED CALL"
SINTEX
BUY ABV 361 SL.355 TGT 606 609
" BUMPER CALL "
RAYMOND
BUY ABV 395 SL.387 TGT 399 404
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