Comparison of 2 Indices -reveal the answers for the next trend.

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Yes, you heard it right by comparing 2 main indices you can know what will be the next trend for the Indian Equity Markets.

By comparing Nifty with Bank Nifty we found out some facts which signal some shocking revelations. Indian Equity Markets has picked up tremendous pace from past 2 months due the major event lined up (election). Now the question arise how far this euphoria sustain?

Well many stock market participants are now turned extremely bullish and are coming with targets of 7500-7800 for Nifty. We will take this as a negative signal as when crowd thinks in one way, markets attune to give a different conclusion.

Lets come back to the comparison, Nifty has made a all time high of 6776 which was made on 3rd Of April 2014, but Bank Nifty has not even managed to cross its previous high of 13281 which was made in 2013, this is a classical negative divergence between two indices which suggest that it is implicit to be cautiously positive at current juncture.

We will not be saying that there could be a serious sell off following but when you see weekly charts Nifty has shown a red bar which opens negative possibilities. We are closely monitoring these two indices for further clarity.







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