Wednesday, January 13, 2016

Panic continues . . .

Hi All,

In spite of week economics numbers markets opened positive by almost a percentage points on account of supporting global cues, however could not sustain and gave away ala its gains are now trading negative by around 0.5%

Nifty broke recent lows and slight bounced from 7450 mark, however as mentioned in the earlier posts, any rise now should ideally be used as shorting opportunity unless we get a concrete confirmation on charts.

On the lower side the next stop can be near 7420-7400 levels and below that the next support directly comes near 7100 levels.

On hourly charts, Nifty has created a Rickshaw Man Pattern which shows a lot of uncertainty and an either side huge movement can be expected.

India Vix chart looks very bullish, however its trading near a resistance of around 20 – 20.5% mark, a sell off on India Vix chart can sponsor a relief rally in the markets for a while, till then its better to be on the short side and use rise in price for selling opportunities, a close below 7500 will be seen as even worse for markets to go ahead…


Cheers

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