NIFTY goes trending again on the daily. While hourly has very high strength, one can re-visit longs on a pull back. On the Daily, while it is a highest high on price there is not much to rejoice. Indicators have given the lowest high for the past 3 months. This clearly shows that the bulls of really tired, but bears are not yet equipped for a big run. A down tick on the daily and a weekly permission will give a beautiful short trade.
For now though daily is not very interesting, hourly provides amazing opportunities. So wait for a pull back to value to go long.
Sectors today.
Basic Materials was the star of the day with a gain of 2.73% on its index. With Steel and Aluminum doing extraordinary runs with a gain of more than 4.75% on their indices. Almost all the stocks listed on the metal segment have closed positive today. Among others Tata Steel has made 6.42% gains while Hindalco made a 4.99% gain to its previous closing. Chemplast Sanmar was the topper with a 12.43% gain in its value.
Following second was the Energy sector with a gain of 1.95% on its index value. Refineries made a comeback with vengeance gaining 2.33%, Gujarat Gas took leadership with a gain of 9.48% and closely followed by Reliance with a gain of 2.91% which went a long way in getting the NIFTY to great heights. Prominent among refineries BPCL and HINDPETRO were subdued.
While all the sectors of our economy closed with gains of above 1%, the sector that gained the lowest was Health care with a 1.05% gain to its index value. Though there were big gainers here like Ajantha Pharma, Sterling Bio, Dr. Reddys etc., there was not much strength shown while many prominent names closed weak.
We closed out NIFTY hourly long on target very well early into todays move. Though we made small gains, the discipline of following our plan gives more confidence. There is another long trade to look for on a pull back. Our Long cal RAYMOND got locked in first circuit gaining 10% from previous close and is close to its target.