HDFC has bounced up from levels near 2200 for the third straight day, validating Friday’s bullish inside bar candle, daily MACD’s bullish turn, and the RSI’s breach of the falling trendline last week.

The drop confirms the bearish divergence (lower highs) on the 14-day RSI.

Nifty is trading at day’s low of 11,269, having faced rejection at the trendline connecting October 2018 and Feb 2019 lows.

I believe markets are always irrational and by merely following the irrational entity, the Fed is now stuck between the rock and a hard place.

India’s Nifty 50 is trading in the red, but is defending the 50-hour EMA 10,445. The bullish hammer reversal confirmed on Friday indicates scope for a corrective rally toward 10,700-10,800 in the next few days. Buy the dips.

Brent oil is looking south, having witnessed a bear flag breakdown on the hour chart.