NIFTY - Bull's "tease" yes day

12 Apr 2023

Nifty bulls climb. another day another high print. Close was near the supply zone. In fact, very strong one ranging from 17750-17800. The rotation story continues. It started with Reliance, followed by Tata Motors, then the Kotak Bank. In between supported by the HDFC twins. Not to mention many other contributions but these are heavy weights. On the laggards are the IT one. In this results season first of the lot TCS is due later today. Also, today the US inflation and our own inflation data are due. IMF downgrades the global growth, including ours warning 1990 type of situation. We still hold the forte with close to 6%. Despite some negative divergence, the overall sentiment and breadth improved substantially in favour of bulls. This month close would be very vital for the direction of the entire year. In the one hour graph we have three black crows with negative divergence, suggesting impending pause or corrective move. 17750-1780 ideally to hold. For the day sell with stops above 17760. A direct move below 17670 can potentially trigger towards 17620. 17500 is the new lifeline for the bulls. Bear's don't have chance yet to trigger deeper losses. The up move above 200 DMA is just 1%, and thus bulls would be very cautious not to throw away the advantage.