Tuesday, March 6, 2018

#MarketUpdate - Leeeee Bazaaaar... Happy Journey 10 Hazaaar ! ! !

Hi all,

After flirting with the support near 10330 yesterday, Nifty saw a small bounce till the mentioned resistance area near 10430.... However could not sustain the rise and gave off all the gains and fell more than 200 points from today's high...

In this bargain, Nifty has broken a key support zone, near the lower end of the basing (Consolidation) area of 10250-300 and closed below 10250 mark.

As mentioned earlier, sustaining below the support zone for tomorrow (means this not being a false break down, usually happens in indecisive markets) Nifty is free to fall and reach the next pit stop near 10070-10030-10000 levels.

On daily/weekly charts, following observations were seen -

  • Nifty broke the sideways consolidation (10270-10650)
  • It has also broken an upward trend line from the lows of December 2017
  • Also broken the pennant like formation mentioned in earlier post (Read this
  • Confirmed the hidden divergence after breaking 10270 (Read this
  • Nifty also broke below a Head N Shoulder (HNS) like pattern on daily / weekly charts, which even suggests lower targets near 9300-9200
  • Trading in proximity of 200 daily and 40 weekly moving averages (10120 & 10170)
All these observations are bearish in nature, other than the moving averages, which clearly shows that the bias for markets is bearish, if Nifty sustains below the support areas of 10250-10300 with immediate targets near 10100-10000 levels, and below that 9800-9600 and even 9300 (as per the HNS pattern) aggressively.

So in a nutshell, untill any further bullish confirmation... Happy Journey 10000....

Please find below the chart for better understanding ...



Cheers...

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