In continuation with day before yesterday’s decline, yesterday also market opened weak with a gap down as we had expected. After the gap down opening there was no looking back and the market kept on declining to close at the lowest point of the day once again. Traders had utilized the two days relief rally to liquidate all their long positions to book profit. The trend reversal pattern had been confirmed by the “Inverted Hammer” which formed day before yesterday and same been mentioned in our yesterday’s note.
As we mentioned in the last notes it is confirmed that the celebrations are over in US market. Once again panic set in US market after the bad economic data was out with 7-9% down in most of its indices. US market Asian markets has not failed to influence the Asian markets which have opened and trading very weak with their indices down by 6-10%. In line with the global markets nifty is also expected to open weak. Don’t be surprised to see a 100-150 points Gap down opening in nifty.
On the lower side nifty may find support near 3289, 3240 or 3199 levels. Similarly on the upper side resistance exists near 3388 or 3424 levels. In worst case nifty is not expected to breach 2997. In case of panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
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