Wednesday, April 6, 2016

Buy the Rumour, Sell the fact....

Hi All,

As mentioned in the Budget day post, Markets were expecting a rate cut for more than a month now, and has given the upward move based on it. So as per the law of Buy the rumour sell the fact, markets expected to fall once the actual news is announced, and the same happened yesterday where markets tanked by more than 150 points.

While falling yesterday, Nifty also gave 2 bearish patterns, Falling Wedge breakout (Please find the image) and an Evening Star on daily along with a Hanging Man on Weekly charts.

However, the bearishness can only be continued if Nifty breaks the recent swing low of 7580-70 levels, below which Nifty can target close to 7400 levels based on Wedge pattern.

We will wait for further confirmations for taking any specific trade in Nifty....

Levels to watch out for –

Supports – 7570-7510-7470-7400
Resistances – 7650-7700-7740-7785-7800






Cheers

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