Half Hourly Chart
SensexThe Nifty continued it's uptrend today but retraced from the highs to form a shooting star on good volumes, which is bearish . The steep rising channel shown on half hourly charts has been violated.
The Nifty may correct down or move sideways in the short term as the intraday oscillators showed overbought condition with negative divergence leading to the retracement from the day's highs.Thus the fall may continue till the overbought condition is corrected. Daily Rsi 14 and Macd are still showing negative divergence.Stochastics has reached the overbought region.
Another point to note is that though Nifty has scaled the upper trendline of the rising wedge, Sensex has yet to do the same. The resistance is at 16312.
However since Nifty has broken out on the 7th of September from the previous highs and from various bullish patterns for targets of around 4900-5100, this correction should be a buy on dips oppurtunity, so long as the 4580-4600 levels are held.
Supports and Resistance levels are marked on the charts.
Happy Trading !!