The Avalanche

Nifty Nov fut, gave away a little over 200 pts from todays high of 4734, to make a low of 4531.

It breached not just the 4640 levels, but also the 4571 level to confirm the bearish trend on monthly charts as well.

At present Nifty is trading close to the 100 EMA on daily charts. However, it is unlikely that it will find any support there. The next level, below todays low of 4531, to watch out for is 4406, which is at 150 EMA on daily.

Although Nifty is trading in the highly over-sold zone, yet, it would be extremely risky to trade with a positive bias. I believe, that any upside, can only be confirmed after there is any sign of an exhaustion of the downtrend, not earlier.

As of yet, it seems like Nifty is in the correcting mode and will bounce back to rally upside on a longer perspective. But, to accumulate or bottom-fish for stocks, as on date would be a little too risky. I would rather wait for some signs of consolidation before diving in to build up a portfolio.

Happy Trading !!






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.