A quick take on Nifty50
- The last 3 tops have found a top around the green trendline.
- RSI is finally getting into overbought zone at 70+ could be higher after todays close.
- 3 gaps already and today could be the 4th. Historically not seen more than 4-5 gaps sustain.
- Will it be a top or a pause is a guess you need to take. But clearly the risk-reward for Index and Large Cap longs is not favorable.
- A short trade comes only when we start seeing more reversal but after such a momentum the reversal will not be in a hurry.
- The only trade which comes up is to focus on midcaps and smallcaps which can play catchup. Even in leading sectors the broader stocks can play catchup ( example an IDFC First Bank or RBL or City Union which have started rallying.
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