Thursday, June 1, 2017

#NIFTY View on the 1st June.

On the 25th we saw the Index started a rally with a good effort to move up Bar on high volume. The next day we saw the index scale new heights with another Effort to move up bar with above average volume.  However this week the index has not been able to make much head way. We saw a very interesting bar on the 31st. We saw a small spread down bar on very high volume. This bar indicates that supply tried to overwhelm the Demand. However demand put up a great resistance and as a result the spread remained small. Still the day belonged to supply as indicated by the down close.  Overall this week the demand failed to move the price up much in spite of great effort.  This Effort to result ratio does indicate weakness. Normally when much effort fails to get the desired result the general tendency is to step back and come back later with renewed strength. We have a similar situation and looks like a retracement would follow. This would only give more opportunities as the overall uptrend is very much in place and the index will seek newer highs.




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