Nifty Making Higher Highs and MACD showing Negative Divergence

It can be seen that in the last two days , Nifty is making higher highs while MACD is showing Negative Divergence.So there is a possibility of a correction in 2-3 days.

Grey Market buzzing with activity

After a brief lull following the closure of the initial public offer (IPO) of Mahindra Holidays & Resorts, the grey markets of Ahmedabad and Rajkot have again started to buzz with activity, as two power companies — Adani Power and National Hydro Power Corporation (NHPC) — get ready to hit the market in the next couple of weeks.

According to elliot wave analysis done previously, nifty has bounced back exactly from the trendline support of 3920 and is now in the 5th wave.

A position for shorting nifty exists when 233 min (red line) breaks the 377 min ( green line) from above for good profits.

Nifty analysis on whether to buy this rise

It can be seen that one could have bought around the levels of 3970 but it is not advisable to do so since the short term trend is down 8 day Exponential moving Average below the 13 day exponential moving average

One could have covered the shorts in nifty futures taken at 4120 levels at around the levels of 3970 levels and could have made handsome profits of 150*50=7500RS. ( excluding commission)

Nifty Intraday Analysis Positional Basis 13/07/09

It can be seen on a Positional Basis also that Nifty has broken the 1030 min Exponential moving average and therefore it was a sell at the point of 4120.