Nifty 02Feb'21: Bulls take the Elevators too

A 6-day correction is well taken care off by just a 2-day bounce back from the Nifty index … guess the rules of the game are getting redefined. Nifty futures have managed to post a new life high in yesterday’s session after which there was some degree of profit taking and momentum slowdown. Apart from the opening hour, volumes throughout the rest of yesterday’s trading session was on the sub-average side. Add to this a price-momentum negative divergence shaping up as well. All of these suggest a prospective momentum consolidation and so long positions should not be hurried unless its an intra-day high momentum trade. On the downside, 14,500 should act as a source of immediate support.

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