When a scrip is technically strong and if NIFTY falls , how does that scrip react? Will it be positive as it is technically strong or Fall along with NIFTY ?
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When markets fall and if the fall is strong, the correlation spikes to 1. Meaning if the Index is falling hard, it tends to pull along the stocks as well.
Also, remember one of the basic assumption in TA… the trend of the stock should confirm with the general trend of the market.
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It all depends, any thing is possible and it is any body’s guess.
-Its possible that the when Nifty falls, the stock may actually go up. But then it would not be able to go as high as when Nifty is favorable.
-Its possible that the stock may correct along with Nifty but it may not correct as much due to its internal technical strength.
-Sometimes stock may just consolidate while Nifty is correcting and then resume its up trend when Nifty turns around.
So to some extent overall market sentiment may affect event strongest of the stocks.
Having said that, there are set of stocks which have negative correlation with Nifty. They will move up when Nifty moves down and correct when Nifty moves up. Like sector rotation, these set of stocks can keep changing from time to time.
This is where Relative Performance comes in to play. Traditionally this is know as Relative Strength Indicator (not the RSI) but I prefer to call it Relative Performance to not to confuse with RSI.
Relative Performance helps in identifying relatively strong stocks and get in to them early when Nifty turns around. It also helps in identifying stocks that are doing well while Nifty is correcting.
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thank you 
- Relative Performance
Most of the charting software would have an indicator which would show the relative performance and even generate a report of the same for all the instruments.
e.g. following url is comparison of LT with Nifty on finance.yahoo.com
http://finance.yahoo.com/q/ta?t=1y&s=LT.NS&l=on&z=l&q=l&c=^NSEI&ql=1 - Identifying negative correlation.
In simple term negative correlation is if nifty moves up, stock moves down and vice-versa. When this happens consistently over a period of time, it can be said that the stock is in negative correlation with nifty. In Relative Performance report, these would be in positive territory when nifty is down and negative territory when nifty is up.
Very Nice …thanks