Nifty witnessed a gap down opening following global cues and traded lower in today's session. shedding 89 points.The whole day the market breadth was negative with 493 advances to 1005 declines clearly indicating persistent weakness.Today's fall can be considered as a testimony to the bearish pattern formed on the daily chart.
Nifty closed below the 20 and 40 DMA indicating medium term weakness, hence the 200 DMA levels would be very crucial in the move ahead in coming days.If the markets sustain the dynamic levels there emerges a hope for an upside moves,violation of the levels will open up up bearish alternatives.
Taking into consideration the "LARGER PICTURE" we have witnessed the violation of the down trend line and markets crossing the 200 DMA levels.After accomplishing that move markets corrected nearly 40%,here the 50 % levels still remains intact.moreover after correction markets enter into a consolidation phase in a disguise of a wedge pattern, also twice the 200 DMA has been successfully tested and honored.Here, taking into account all these factors a good move to the upside cannot be ruled out ,since markets are in a corrective phase and we have no weight of evidence to prove that the preceded bullish trend has reversed.
For the investors and traders it would be apt to ride on the volatility within the premises of the pattern accordingly,avoid taking any positions home unless we get a clear enough evidence of the further move
Nifty closed below the 20 and 40 DMA indicating medium term weakness, hence the 200 DMA levels would be very crucial in the move ahead in coming days.If the markets sustain the dynamic levels there emerges a hope for an upside moves,violation of the levels will open up up bearish alternatives.
Taking into consideration the "LARGER PICTURE" we have witnessed the violation of the down trend line and markets crossing the 200 DMA levels.After accomplishing that move markets corrected nearly 40%,here the 50 % levels still remains intact.moreover after correction markets enter into a consolidation phase in a disguise of a wedge pattern, also twice the 200 DMA has been successfully tested and honored.Here, taking into account all these factors a good move to the upside cannot be ruled out ,since markets are in a corrective phase and we have no weight of evidence to prove that the preceded bullish trend has reversed.
For the investors and traders it would be apt to ride on the volatility within the premises of the pattern accordingly,avoid taking any positions home unless we get a clear enough evidence of the further move
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