Nifty Page: 09-04-2013(EOD)

If Monday was listless, today's session was full of action and it once again proved my earlier exhortions correct that no one can/should trade on the basis of borrowed tips and levels. Charts have to be understood and trades should be based upon one's own readings---

Let me illustrate from yesterday's post:

The oversold Hourly and positive divergence were good indications for today mornings strong opening---

And it did open with a gap-up. But as we were approaching 34 Hr EMA (5600 at that time)and first channel resistance( as illustrated in Hourly Chart below):

one could not miss noticing negative divergence and a -ve wolfe wave developing in 5 min charts:

And as the Wolfe wave was getting completed and the lower channel line was getting tested, there was no positive divergence visible---

And that meant even at mentioned crucial level of 5527, the downmove was not showing any weakness.

And once we entered the gap(5527-5448) mentioned in yesterday's post--- a gap filling looks almost certain and all readings at around 5548 level only should be used for further guidance.