NIFTY 02 MAY 2025 : RSI divergence and INDIA VIX is giving signals as short term top.
Hello everyone,
Since yesterday, I have often mentioned RSI divergence. The 15-minute, hourly, and daily time frames show this discrepancy. We witnessed the effect during the final fifteen minutes of trading. Unexpectedly, the INDIA VIX also surged to close at 18.22, up 5%. This suggests that the market is afraid.
Tomorrow, I'll share my monthly view. Charts currently indicate that the top has done. If it arrived at 24458, it doesn't matter. Tomorrow is our holiday. All eyes should be on the 24200 levels when the market opens again on Friday.
- I am expecting first support to emerge at 200 DMA which is at 24050 or nearby.
- Break of 2400 will give us panic fall towards 23850 to 23800 levels.
- On cautious side, if it breaks 23800 then we will be again in the panic mode where market can fall more rapidly.
What's for bulls?
- One must and must wait for decisive cross over above 24500 levels to bet for 25000.
- Or, there can be the possibility of support either near 24000 or near 23800 levels.
Among all the indicators at the moment, RSI divergence appears to be particularly significant. There will undoubtedly be an effect on GIFTNIFTY as well.
Additionally, keep in mind that DOW JONES is also close to its 40700 reactive zone.
One major area of market worry is the geopolitical development between India and Pakistan. Adverse probability has been denied by the Indian market, it is true. That will eventually come into play.
It should be noted that HDFC BANK and Reliance received the most of the gains. This typically occurs in situations where people attempt to be safe. No rally can last longer if it is approached so gently.
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