The markets continued on their downward spiral to close lower by 3.5 pc to close at 5677. The markets are clearly in their 3rd leg down from 6229. We may just be entering a 12-18 month bear market phase.
1. If this is merely a correction from the top of 6229, the markets should end their correction soon. Below 5627, we can confirm that the entire rally which started in Dec'11 is indeed over.
If this is a 3 leg correction A = 6229 - 5566,
B = 5566 - 6093,
C = 6093- 5649 and ongoing
2. Alternatively if this is an impulsive down move then we are in its 3rd leg down with targets of 5430 or 5020.
3. We may see a corrective bounce up with targets of 5818, 5871, 5924.
4. The rupee has deteriorated below 61 and the fundamentals are weakening. Banks have corrected more than 30 pc from their peaks.
If we are in a bear market then the stocks going strong right now would be the last to crack. Next week, we have the Parliament in sessions and fresh cues could also be got from the Parliament.
The time now is to conserve funds and let the stocks correct.
1. If this is merely a correction from the top of 6229, the markets should end their correction soon. Below 5627, we can confirm that the entire rally which started in Dec'11 is indeed over.
If this is a 3 leg correction A = 6229 - 5566,
B = 5566 - 6093,
C = 6093- 5649 and ongoing
2. Alternatively if this is an impulsive down move then we are in its 3rd leg down with targets of 5430 or 5020.
3. We may see a corrective bounce up with targets of 5818, 5871, 5924.
4. The rupee has deteriorated below 61 and the fundamentals are weakening. Banks have corrected more than 30 pc from their peaks.
If we are in a bear market then the stocks going strong right now would be the last to crack. Next week, we have the Parliament in sessions and fresh cues could also be got from the Parliament.
The time now is to conserve funds and let the stocks correct.
Hi,
ReplyDeleteI have been following your blog for quite a long time. I have observed that your Nifty updates are almost accurate. I am new to stock markets, are these updates for F&O or cash deliveries? Can you please help with how to use these Nifty update data for trading? With best wishes I await.