Nifty future charts are showing the sign of a reversal, as we have spotted bullish divergence on the weekly charts. Divergence is formed when there is slow down in the current momentum, on the below chart see nifty future is making a lower low as compared to previous one, but slow stochastic indicator is making higher low there is divergence in price and indicator. This hints that nifty future is soon going to bounce in short term, so this would be best time to accumulate nifty future for profit of at least 300 points. We will always wait for a confirmation before entering onto the trade, so let us see if front line stocks are showing bullishness or not. Stocks that I suggest to look are SBIN, ICICIBANK, BHEL, RELIANCE, DLF, ONGC, INFY, TCS, WIPRO, M&M, TATASTEEL, JINDALSTEL and ITC. If these stocks are turning bullish then nifty future will be bouncing 300 points very soon, strategy will be to buy nifty call option and nifty future in large quantities. Learn technical analysis and become independent trader or call us at +91-9970777789.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
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