Technical Analysis is applied social psychology. It aims to recognize trends and changes in crowd behavior in order to make intelligent trading decisions. We believe that by recognizing current Chart pattern and identifying balance of power between bulls and bears, we can anticipate next direction. we can convert this information into profits with minimum amount of risk.
Nifty formed Big red candle after first breakdown of key support. This is indicating that, selling pressure is huge and downward momentum to continue further. Nifty charts already entered in sell mode. Banknifty still need to give sell mode. Most probably it gives sell mode today by closing below 25850. Key support level to breakdown to move downward is at 10620-10600 zone for Nifty. 25850 for Banknifty. Advance Decline ratio showing Bear strength across sectors. Many stocks continueing down ward momentum and breaking key supports.
Much awaited trigger news, KARNATAKA ELECTION RESULTS, market discounted now. Next key triggers are global news and RBI credit policy next month. Global markets too turning downward trend. Our markets in line with Global trend. Hence, as far as possible, book partial profit booking and get ready to major correction ahead. As per Elliott Wave Perspective, Major counter trend wave completed and now Impulsive down wave has begun. Keep strict stoploss to long positions. Avoid fresh investments. Sell on Rise Market.
10950 stiff resistance for nifty.
Key support 10600. Sell on Rally market.
1st time after a long time, nifty opened and closed below channel support line yesterday. Giving first level confirmation of major trend reversal in market. Banknifty too closed below channel support line as shown in above chart. Both indices retraced 78.6% and formed top reversal formation "GRAVESTONE DOJI" and closed below it next day. Hence, we can treat this signal as valid. Midcap and small cap indices too falling severely. Market in line with Global market trend. US markets too given similar kind of top reversal pattern. Nifty closed below 10761 spot. Next important level is 10600. Once this level breaks down and close below this level, we will get 100% confirmation of major trend reversal in higher degree. Hence, liquidate at least 25-30% portfolio at current levels and wait for lower levels to accumulate. Avoid fresh investment. We may see volatility in market due to KARNATAKA political news. 10950 stiff resistance for nifty. Key support 10600. Sell on Rally market. Hence, its wise to book profits in Long positions at current levels as risk of retesting of recent lows is huge. Advance Decline ratio showing BEAR grip on market.
SUSPENCE REVEALED BUT TWISTS STILL GOING ON. KARNATAKA ELECTION RESULTS impacted market sentiment to take U turn from higher levels. Thats general purview on Market. Now comes to Technical perspective: GRAVE STONE DOJI at 78.6% retracement level(resistance level) showing that bears put fullstop to Bull's run. Yesterday nifty and Banknifty both tested peaks from where previous fall has begun. 10950 and 27020 are crucial resistance at current levels. Both marked 78.6% retracement level. Market lost initial gains and went into negative zone in closing. This is clealy indicating that lack of follow up buying. Smart money interested in profit booking at higher levels. From hereon, 10760 and 10560 plays key supports which need to break down to going down. Hence, its wise to book profits in Long positions at current levels as risk of retesting of recent lows is huge. Nifty , Banknifty and other major sectoral indices all together formed negative formations in daily charts. All round selling pressure can expect from current levels. Moreover, nifty has risen nearly 1000 points from recent lows 9950. Profit booking is natural phenomena. Once 10760 breaks down, next key level is 10560 where we get confimation of major trend reversal. Below 26250 we get trend reversal signal in Banknifty. Sell on Rise market. Avoid fresh Investments.
KARNATAKA ELECTION RESULTS major cue for markets now. Stage is set for Berish reversal, Nifty and Banknifty both completed counter trend moves and major sectoral indices, IT INDEX, METALS, MIDCAP AND SMALL CAP INDICES all pointing downwards, only thing required is trigger of event. Todays election results likely to trigger major selloff whatever outcome it may be. Moreover, US dowjones too set for top reversal formation yesterday. Hence, Be ready for major correction. Key levels for intraday for nifty support at 10765. Major support is at 10600. Once 10600 breaks down, we get confirmation of trend reversal. It has to happen someday from here. Wait for Election results today then after that can take trade decision. 10868 acts as resistance. 10765/10600 key supports.
Berish Belt-hold pattern at resistance zone making nifty Bearish. Doji pattern at Resistance making BankNifty bearish. Both indices formed reversal patterns at resistance zone indicating that upside is limited and bulls exhausted at current levels. 10560 spot is key level to watch in Nifty. Once this key level breaks down, we should get ready for major correction in coming days. 10560 is the Laxman Rekha for Bulls. Last support for Bulls. Below that level, BEARS takes control on market.
Banknifty completing counter trend move yesterday by forming DOJI pattern at resistance zone. At current levels, Banknifty has downward gap. Hence this gap acting as stiff resistance. One negative session today gives us confirmation of reversal. Hence, investors and traders must book profits in long positions and get ready for major correction. Technical indicators suggesting big correction in market in coming sessions. Avoid fresh investment. Keep strict stoploss to longs. Below10560, BEARS get more strength and more selling pressure drags nifty downwards to 10500-10400.
NIFTY IT, NIFTY METALS, MIDCAP50, SMALL CAP INDICES ALL formed three bearish candles from last 3 trading sessions. Clearly indicating all round trend reversal in market. From hereon, utilize every bounce to short sell for lower targets. SELL ON RISE market.