S&P CNX NIFTY - Daily Technicals - January 4, 2013 - HDFC Securities

- Up move within a small range continued in Nifty as Nifty witnessed yet another sideways consolidation pattern at higher levels, within a high low range of around 31points.

- A 'hanging man' type candlestick pattern (small body with long lower shadow) has been formed around the swing high of 6017 levels which is suggesting that bulls are losing strength at higher levels.

- After opening gap up once again today, Nifty was not able to maintain that opening gap and slipped down immediately during early session and filled the opening up gap.

- Formation of negative divergences in daily momentum indicators like RSI, ROC, +DMI are signaling loss of upside momentum in Nifty and minor correction seems to be underway.

-We may observe divergence formation in Nifty and in the market breadth indicator like volume modified adv-dec indicator (higher high formation in Nifty and higher low formation in the indicator). This could be a reflection of weakening market breadth.

- Today's formation of stalled type pattern at the swing high with the rise in volumes (over the last four sessions) is reflecting a form of indecision at higher levels.

Source : Equity Bulls

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