Once again Nifty Future made a new top, but could not sustain the gains and went below yesterday's low and also closed lower than yesterday. As per candlestick charts, today's candle is a shooting star pattern indicating bearishness. I maintain my bearish view and fall will accelerate once market breaks the Trend Line - which may happen sometime next week.
Nifty Future will find first support around 3520 - which was an earlier top. Once the trend line is broken, market can go down upto 3300 and there after 3150 . Needless to say election results/ other international events will have enough potential to make the above levels a reality.
It is better to liquidate long postions on every rally as markets may still show strenghth (above 3620), with support from foreign markets. Short postion in Nifty may be created at higher level tomorrow and buy 3800 Call as a protection.
RELIANCE did hit the 1925-50 range as anticipated. Below 1820 - on break of Trend Line, it has potential to come down to 1700 and 1500 levels in the days to come.
Do remember that like everything else in nature - market too gets support of Newton's law while going down and hence the fall is always faster than the climb.
Happy Trading,
Ketan Asher.
good analysis, keep up the good work
ReplyDelete