Monday, April 3, 2017

#NIFTY View on the 3rd April.

 During the weekend review we saw the recent up move was lacking conviction and the probability of taking out 9220 is less. However contrary to our expectation the index did cross the crucial level of 9220.  Has this level been successfully taken out?  The volume seems to tell a different story. We had lowest volume in recent times ( I hope the NSE data is right). Obviously the volume does not warrant the move we saw today. This makes the move a suspect. It is uncommon to see such low volumes when the index is seeing historically new high. Does it mean that sellers just stayed away?  So, tomorrow is very crucial. We need to wait and see whether today’s move will be validated or the move will fail and we will see index going back into the trading range.  Technically or rather VSA wise the later seems more probable. But then the market will have its own say as always. Keeping my fingers crossed.


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