Nifty breached all important barriers last week and lost almost 4% on closing basis and made new low after 1st September 2010.
This much weakness signifies that market is in big correction mode and is ready to fall more in the absence of big ticket buying from institutions.
FII's are selling continuously this year and sold for more than half of their holdings bought in the year 2009 and 2010 within just first month of the year 2011.
Nifty is trading below 200 DMA at 5660 (EMA) and 5630 (SMA) which is big sign of weakness.
200 DMA was breached on closing basis in April 2008 on closing basis and the lower levels that followed was just a history and Nifty fell for more than 50% after that.
Although our market and world economy are not in that bad shape now and we will not stumble that much and will find support much before that.
The immediate support is now emerging at 5434 level and some buying can be seen near or before this level.
But this level may prove to be only a pseudo support level and market may stumble even further to the lows of 5340 and 5290 levels.
Level of 5434 will be only a temporary relief level after so much weakness and punters are gearing up sell even more.
Most retail investors are holding shares with minor losses that they will surely sell in any further breakdown and it can be seen even today.
This much weakness signifies that market is in big correction mode and is ready to fall more in the absence of big ticket buying from institutions.
FII's are selling continuously this year and sold for more than half of their holdings bought in the year 2009 and 2010 within just first month of the year 2011.
Nifty is trading below 200 DMA at 5660 (EMA) and 5630 (SMA) which is big sign of weakness.
200 DMA was breached on closing basis in April 2008 on closing basis and the lower levels that followed was just a history and Nifty fell for more than 50% after that.
Although our market and world economy are not in that bad shape now and we will not stumble that much and will find support much before that.
The immediate support is now emerging at 5434 level and some buying can be seen near or before this level.
But this level may prove to be only a pseudo support level and market may stumble even further to the lows of 5340 and 5290 levels.
Level of 5434 will be only a temporary relief level after so much weakness and punters are gearing up sell even more.
Most retail investors are holding shares with minor losses that they will surely sell in any further breakdown and it can be seen even today.
Nifty Pivot 5550
Support 5480-5451
Resistance 5548-5579
Support 5480-5451
Resistance 5548-5579
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