The Nifty tumbles on strong negative global cues.The markets gave a gap down opening following crackdown to a dip of 87 odd points closing the hammering at 5117.The broader market stood undoubtedly in the favor of bears whole day with 389 advances to 1092 declines.Post weak opening the tussle between the bulls and the bears peaks up,even after several attempts by the bulls,they failed to sustain the vital levels and eventually the bears dragged them down.Today the bulls were completely thrashed with absolute no hopes of recovery,as the bears had the dominant hand.
The prevailing weakness has now clearly started reflecting on the charts.The technical s are also biased towards the bears considering short term view.With todays fall the markets have violated the 40 DMA and closed below it,adding to short term correction.The markets rose on double bottom formation,the rally exhausted around the 61.8% retracement level and shown a reversal from there.Considering the previous fall from 5630 to 4770 as wave "A",the "B" wave reverted from around 61.8% level,hence the minimum objective of wave "C" comes to around 4500.This "ABC" pattern will mature if the weakness and global uncertainty continues for long,also the monsoon deficit could play "Fire in the oil" role leading to the objective.
The MACD is trading with a negative crossover and is about to pierce the zero line and enter the negative territory. In ADX,the -DI has crossed the +DI and the ADX is trading around 25 level indicating change in trend.The violating support levels will eventually make the picture worse,leading to bearish markets.The markets are currently resting just above the 200 DMA,which holds the key going further.If the markets are sustaining these level's then there remains a hope for the bulls to make a comeback.
The expiry week is likely to experience choppiness,hence it is advisable to trade with strict stops and avoid any unwanted risky trades till the alternative get well defined.
The prevailing weakness has now clearly started reflecting on the charts.The technical s are also biased towards the bears considering short term view.With todays fall the markets have violated the 40 DMA and closed below it,adding to short term correction.The markets rose on double bottom formation,the rally exhausted around the 61.8% retracement level and shown a reversal from there.Considering the previous fall from 5630 to 4770 as wave "A",the "B" wave reverted from around 61.8% level,hence the minimum objective of wave "C" comes to around 4500.This "ABC" pattern will mature if the weakness and global uncertainty continues for long,also the monsoon deficit could play "Fire in the oil" role leading to the objective.
The MACD is trading with a negative crossover and is about to pierce the zero line and enter the negative territory. In ADX,the -DI has crossed the +DI and the ADX is trading around 25 level indicating change in trend.The violating support levels will eventually make the picture worse,leading to bearish markets.The markets are currently resting just above the 200 DMA,which holds the key going further.If the markets are sustaining these level's then there remains a hope for the bulls to make a comeback.
The expiry week is likely to experience choppiness,hence it is advisable to trade with strict stops and avoid any unwanted risky trades till the alternative get well defined.
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