Nifty has fallen like a knife from levels of 6150 to present levels close to 5750 since our 'Big Bang Update' in a matter of few days reaping close to 400 points on the short side. A bounce may be probable near levels of 5850-5880 in the short term keeping the rapid fall in mind.
Current View:
Nifty has fallen sharply on higher volumes indicating that it may be the 3rd wave down. It would be best now to wait on the sideline and look for a turnaround signal near levels of 5450-5550 in the near term.
Till then enjoy the shorts.....
Dear Ankit,
ReplyDelete"presently yet no one is particularly bearish with most of them being clueless."
I particularly like this sentence of your analysis because every rise is getting sold,yet we day traders are hopeful about the "turn around"
Looks funny.Now the question is that whether it shall even stop around 54-5500 or not?Let us see in coming days.
Thanks for the views.
But the
ReplyDelete"SHORT nifty with sl of 6390 for Target1 of 3800"
even though you said it on 4th Jan,looks too much.
How many traders are there or shall there I dont know,who will trade in this manner.No doubt,one can not predict one's trading style,but the target at present looks distorted.Never the less would like to see the target.
Dear Ankit,
ReplyDeleteInstead of "target",would like to see the market,whether it shall behave in the said manner as you predicted.As I can not see market maximum even beyond day or two,so always get surprised by these kind of studies,observations,predictions.
@ mynac
ReplyDeleteive put forth my views for the long term. definition in analysis is of utmost importance. keeping a definite view of the larger macro scenario in mind as long as th sl holds starts to make things much much more clearer. one can then keep trading the micro in the macro. so, suit your own style.
Fundamentalists are still hung onto the P/E syndrome. However, what the general person does not consider is the difference in the RFR (risk free rate) back then and now. With the RFR hovering close to double digits in the current scenario it would be very difficult for the risk bearing index to outperform. So naturally one would and can expect a cash drain out of equities, atleast in the logical sense.
As of now, mkts have fallen to sub 5650 levels after bouncing back till our levels of 5850-5880. lets wait and watch.