The day started with a gap down opening and tested 3330 levels straight away at 10.00 A.M. Market was expecting RBI announcement at 12.00 P.M . Nifty 1 min charts clearly shows the formation of positive divergence providing a nice oppurtunity for traders to long the market. When the RBI announcement came markets tested newer days low after few volatile minutes. But still MACD(3,10,16) is showing positive divergence which is nothing but a bullish signal to go long.Since then(after 12.00 P.M) markets tested 3420 levels in Nifty futures.
(click on the charts for bigger view)
(click on the charts for bigger view)
dear rajandran,according to the 5dema,nifty shud now move down,isnt it so?
yeah Nifty done its part