#MarketUpdate - Bears fight out ! ! !

Hi All,

As mentioned in yesterday's post, after breaking 10780-10760, the bulls gave it off completely and Nifty fell below the 10600 levels.

Now, on daily charts, Nifty has created a Lower top, lower bottom formation which is a bearish sign, if prices sustain here then the next pit stop for bears can be near 10530-10490...

Also, at current levels,  weekly chart shows a Bearish engulf pattern, which is even severe bearish sign and breaking 10500-10450 levels can even change the mid term bias...

Traders, who went short near 10750 levels can book part profits and trail stop losses at cost....
Cheers

Hrishi

#MarketUpdate - Proved again - Buy the Rumour... Sell the Fact ! ! !

Hi All,

Sorry a post after a long time. Was caught up with something...

Markets have rallied handsomely, and have bounced back by almost 10% from the bottom of ~9950 levels.

The rally can be taken as a discounting factor for the BJP's Karnataka win, and what it means is post the results, which are out now and are better than expectations favouring BJP, it might be a time to cool off a bit.

This might happen on account of an analogy explained multiple times earlier.... Buy the Rumour Sell the Fact, where prices anticipate the outcome of an event in advance and move in the direction of the expectation, only to do reverse after the actual outcome.

Also, today's high near 10910 is the 78.6% retracement for the entire fall from 11200 to 9950, and hence the last resort for bears to strike back, at least for a short period of time. Nifty closed near 10800 levels, and the daily chart shows a Shooting Star like pattern, which is bearish in nature. (Please refer the chart below)

Traders need to wait and watch for tomorrow to take further action. Today's low becomes crucial support support and Nifty sustaining below 10780-10760 can take it further down till 10680-10600.

With the simple Dow theory tenants, a move below 10600 will create a lower bottom on daily charts triggering even a short term bearishness...

Cheers

Hrishi