The Indian market has had a dream run of ~2900 points from the bottom of 21281 made on 4th of Jun to the high of 24174 last Friday on 28th of Jun, in about 17 sessions. Very few would have expected this to happen, yours truly included. But the market is supreme, unemotional, unrelenting and goes against consensus by design.
Is this sustainable? Only time can tell. However, a broader market indicator that I follow, the Bullish %, is clearly diverging from the recent market highs, indicating that the broader market is not in sync with the latest gains. This has mostly been a reliable red flag in the past.
Another big red flag is the Triple Rising Top sell signal on the daily chart in Banknifty, wherein the price action makes a higher high on 3 consecutive days, and then falls on the 3rd or the 4th day (see chart below). The price action is likely to test the upper boundary of the rising channel below, which is ~1200 points away.
(Banknifty Daily Chart - A Rising Triple Top followed by a big red candle signals a sell)
CNX IT looks bullish on the charts but considering that Nasdaq has given a strong double top sell signal on Friday, it may not lend much support in case Nifty decides to go along with Banknifty in the coming days.
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