When markets want to move they just move and you can't do anything do about that. News from China made Nifty break crucial supports last week. The bearish view mentioned in this letter last week is evident. What Next?
Technical Overview: Last week Nifty made high of 8092 and low of 7667. A range of 425 points. However if I consider the gap the range counts to 558. This is huge. On weekly chart Nifty closed with bullish hammer pattern. Last week candle closed is near its last week's open. However this (bullish) pattern may not be strong enough to hold Nifty to higher levels. Markets runs in cycles of expansion and contraction. After lot
Nifty may trade in a range of 7800-8200 with negative bias in coming week.
Resistance is near 8225-8322. Support is near 7775
Short Term (Few days to a Week) : This market is sell on rise market. Sell Nifty on rise near 8225.
Medium Term (Few weeks to a month): View remains same here. Medium term traders wait patiently for Nifty to calm down.
Long Term view on markets (Few months to Year): After long I am elaborating this section in the newsletter. Well do we say Nifty is in long term downtrend?
I
have this view: Wait patiently for some more time for Nifty to give us
clear indications. So far it does not seem to be anything like downtrend
here. This can be seen as opportunity to buy value share for long term.
However markets may not immediately move up now. Further downside
though possible,
may not be substantial. There is not hurry for buying value shares too.
Markets can correct further a bit. So wait patiently for them to give
us signals then one can start buying.
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