Update - 26th March 2020, 9.20 AM
Though, Nifty neither did respect the Morning star pattern nor held on to the mentioned supports, and could not surpass the same, we didn't get any long entry then....
However, below 7800, Nifty halted near the first support mentioned of 7500, and after creating a low of 7511, has so far rallied till 8300-8400
It is very crucial now, that the recovery which happens, should take place in a consolidation manner and there should not be any V shape recovery as seen earlier, as they prove to be short lived.
On the IV side, since 6th Mar, it closed in red only for the second time yesterday, and more importantly, created a bearish like pattern (Harami / Dark Cloud), and today, slipped below yesterday's low, further bearish confirmation for IV can be when IV breaks the low near 71.95, which would confirm the bearish pattern. (CMP 76.90).
All said and done, a recovery, or let me say a sustained recovery can only be possible if we consolidate near these levels with a gradual fall in India VIX... If, without breaking the supports, if VIX creates a new life above 86.64, it could mean some more volatility and pain is still left for markets on its way down...
Cheers
Hrishi
Though, Nifty neither did respect the Morning star pattern nor held on to the mentioned supports, and could not surpass the same, we didn't get any long entry then....
However, below 7800, Nifty halted near the first support mentioned of 7500, and after creating a low of 7511, has so far rallied till 8300-8400
It is very crucial now, that the recovery which happens, should take place in a consolidation manner and there should not be any V shape recovery as seen earlier, as they prove to be short lived.
On the IV side, since 6th Mar, it closed in red only for the second time yesterday, and more importantly, created a bearish like pattern (Harami / Dark Cloud), and today, slipped below yesterday's low, further bearish confirmation for IV can be when IV breaks the low near 71.95, which would confirm the bearish pattern. (CMP 76.90).
All said and done, a recovery, or let me say a sustained recovery can only be possible if we consolidate near these levels with a gradual fall in India VIX... If, without breaking the supports, if VIX creates a new life above 86.64, it could mean some more volatility and pain is still left for markets on its way down...
Cheers
Hrishi
