Thursday, January 28, 2016

Gap down tomorrow. . .

Got this informative forward which makes sense

So even if markets break 7400 we have to discount it on these factors...

Need not panic as lot of people saying the same thing which usually doesn't work. Or it may open down and then cover up during the day

Observation

Nifty 7450 Straddle Break even point I.e. BEP is 7180 and 7720. As per earlier posts 7730 is a key resistance technically. So with confluence of indicators suggesting 7720..7740 levels.. it becomes very crucial
Tomorrow ICICI and Maruti will go down by 5-10%

The forward...

ICICI weight in nifty 5.8%..
Maruti weight in nifty 1.9%..
Total 7.7%..
Now 7.7% of 7400 is 570 points..
A fall of 7.5% of 570 points is 43 points..

This is fall likely due to these 2 counters tomorrow
Bharti Also has 2% weightage ..
A fall of 4% there is also likely..
Reliance, pharma and  software may cushion the fall

So we are likely to open gap down below 7400

Cheers

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