The expiry of the March derivative series and rollovers fuelled yet another rally as NSE headline index Nifty closed with a gain of 1.09 per cent.
The index has created a small double top formation and the 11,570 level will be important to watch out for on Friday. We might see more strength if Nifty sustains above this zone.
However, many important technical indicators still point towards some resistance near the current level.
Fridays session will see 11,600 and 11,630 levels act as immediate resistance points. Supports may come in much lower at 11,510 and 11,420.
The Relative Strength Index (RSI) on the daily chart stood at 70.03. This indicator showed a bearish divergence as the RSI did not report a 14-period high, while Nifty did so.
The daily MACD too remained bullish, but was seen narrowing its trajectory. No important formations were observed on the candles.
We are witnessing an unabated inflow of funds and due this gush of liquidity, the stock market is relentlessly moving higher.
However, sometimes traders pay a price if such upmoves are blindly chased. This is the time, which warrants reducing positions with each upmove.
Though momentum should be chased most of the times, some upmoves, especially like ones happening currently should be better used to take money off theRead More – Source