& the markets tumbled thereafter .............

Friday was nothing short of a black friday, it so seemed to me.

The day began with Nifty Nov fut series, opening at 4845, and giving hopes that the bulls were strong and becoming stronger as the day went on.

But the optimism didnt last long enough. Soon, 200 EMA on intraday chart, acted as a very strong resistance, nifty made its high for the day and supply was feeded in to the bears. The markets started showing its first signs of weakness.

Thereafter, Nifty didnt seem to find a bottom, it broke the prev days low and tanked 55 pts below its prev days low of 4747.80 It was a huge range for the day, a good 170 pts. Aptly, it could be termed as a bears paradise and a bulls nightmare.

So far, I have not witnessed many trading sessions when the bulls were defeated so badly, almost when they were begining to anticipate and enjoy their win. It seemed like the bears had poisoned the champagne that the bulls were to drink in celebration.

Although Nifty is in the highly oversold zone on the daily charts, and also, trading close to the 20 EMA on weekly, which is 4640, Nifty is very weak on weekly as well as monthly basis. However, below 4640, it may sink down further till 4576. On the monthly charts, below 4571, nifty will break the low of prev candle, confirming the downtrend. Also, it may end up making a bearish engulfing candle, which is as the name suggests a confirmation of bearishness.

On the upside ...... Well, as on date, I am a little disorientated as far as the upside is considered. Only if Nifty takes a support and bounces back from its 20 EMA on weekly, I can comfortably think about the upside.

I rest my views here ... Nice weekend !!







Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.