Dear Readers
Another day of fall despite positive global cues ,this time on further domestic political uncertainty.
In todays trade, Nifty just touched the level of5720 which was the level for the market to be positive this week. A relief rally as expected did not sustain and Nifty crossed below the support levels one by one and closed below 5640.
From a short term perspective, it is now clear that Nifty is likely to touch its 200 DMA 5616. Closing below this level has the potential to take Nifty to 5500 and finally to 5300. Seeing today’s close, the kind of support the 200 DMA can provide looks to be very weak and the market is now fully into bear grip. 5300 to 4800 may be considered for long term investments either directly through stocks and ETFs or through Mutual Funds.
It is hard to believe the bearishness in our markets if we look back the run-up during the second half of 2012. Unfortunately this is the truth. Regular followers of this blog would have noticed that the first warning sign was in January of a possible correction and subsequently support levels one after the other were broken. Now 200 DMA is the last hope for bulls.
TechnicalAnalysisSimplified.com
2 comments:
Hello sir,
So when it will be touching the 5300 mark ?
It is very difficult to predict exactly. Nifty made the first crack below 5500 yesterday, this is a sign that 5300 is very much possible. It will depend on how the global markets support. If I look at from pure technicals, Nifty will definitely go down to 5300 levels.
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