Nifty tumbles down shedding 100 points,the overall market breadth was negative with mere 349 advances to 1143 declines.The markets opened on a flat note with no fireworks on the either side.The nifty closed below the 20 and 40 DMA,but is still above the 200 DMA, maintaining a short term bearish view.Today it has violated and closed below 5214 level which was 38.2% retracement level of the preceding bull move,heading its way down to the 200 DMA and 5080 levels,which is 50 % retracement level. Also nifty trading in a falling channel is testifying its short term bearish phase.
Violation of the above mentioned levels on a closing basis will evidently open up bearish alternatives gradually pulling the nifty initially to sub 5000 levels following a support of 4870.If nifty sustains above the 200 DMA then we can say that upside still persists .Hence until we have enough evidence that the trend has reversed upside move cannot be discarded fully.But as of now, on intraday basis, positions can be taken on short side to bag in some profits.
On the daily charts the MACD has pierced the zero line entering the sub zero levels.The momentum indicator RSI is in 30 to 50 range supporting this bearish move.Coming days will make the picture more clear as whom shall we ride on. Also we cannot forget as this is an expiry week ,hence some amount of choppiness can be experienced.Hence traders are suggested to trade with extreme caution.
Violation of the above mentioned levels on a closing basis will evidently open up bearish alternatives gradually pulling the nifty initially to sub 5000 levels following a support of 4870.If nifty sustains above the 200 DMA then we can say that upside still persists .Hence until we have enough evidence that the trend has reversed upside move cannot be discarded fully.But as of now, on intraday basis, positions can be taken on short side to bag in some profits.
On the daily charts the MACD has pierced the zero line entering the sub zero levels.The momentum indicator RSI is in 30 to 50 range supporting this bearish move.Coming days will make the picture more clear as whom shall we ride on. Also we cannot forget as this is an expiry week ,hence some amount of choppiness can be experienced.Hence traders are suggested to trade with extreme caution.
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