Nifty in search of bottom.
As it was expected Nifty plummeted further in search of bottom. Nifty closed at 23085 which is near a fragile support of 23057. It does not look likely that The reasons for the fall are various as explained in the previous posts. Some of reasons being constant selling of FIIs under the guise risk free return available in US debt market in addition to other value buying options emerging in other developing markets.
Nifty valuations have seen reasonable correction now buying can emerge slowly in next 1 to 4 weeks as per my understanding. Dollar is at valuations that are hardly justified and once the correction in Dollar starts we will see FIIs returning to Indian markets. The bottom support levels are at 23057, 22800, 22421, 21783, 21294 and finally 20813 region. It will be interesting to see which of these levels emerge as a firm bottom from where Nifty can bounce back. Resistances for Nifty now seem to be at 23359, 23690 (Father Line Resistance), 23938, 24060 (Mother Line Resistance), 24525, 24948, 25379, 25782 and finally 26277. Once previous ATH is crossed we will see new highs in Nifty hopefully within this year in the range of 27 or 28K. As of now little bit of pain still remains in the market. Nifty is already in the EXTREME FEAR ZONE AT 23.30. Long term investors can start value buying. (As per Ticker tape).
Extreme fear zone (<30) suggests a good time to open fresh positions as markets are likely to be oversold and might turn upwards.
Extreme greed zone (>70) suggests to be cautious in opening fresh positions as markets are overbought and likely to turn downwards.
Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock or index. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. I or my clients might have positions in the stocks that we mention in our posts. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message. Do consult your investment advisor before taking any financial decisions. Stop losses should be an important part of any investment in equity.
Nifty valuations have seen reasonable correction now buying can emerge slowly in next 1 to 4 weeks as per my understanding. Dollar is at valuations that are hardly justified and once the correction in Dollar starts we will see FIIs returning to Indian markets. The bottom support levels are at 23057, 22800, 22421, 21783, 21294 and finally 20813 region. It will be interesting to see which of these levels emerge as a firm bottom from where Nifty can bounce back. Resistances for Nifty now seem to be at 23359, 23690 (Father Line Resistance), 23938, 24060 (Mother Line Resistance), 24525, 24948, 25379, 25782 and finally 26277. Once previous ATH is crossed we will see new highs in Nifty hopefully within this year in the range of 27 or 28K. As of now little bit of pain still remains in the market. Nifty is already in the EXTREME FEAR ZONE AT 23.30. Long term investors can start value buying. (As per Ticker tape).
Extreme fear zone (<30) suggests a good time to open fresh positions as markets are likely to be oversold and might turn upwards.
Extreme greed zone (>70) suggests to be cautious in opening fresh positions as markets are overbought and likely to turn downwards.
Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock or index. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. I or my clients might have positions in the stocks that we mention in our posts. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message. Do consult your investment advisor before taking any financial decisions. Stop losses should be an important part of any investment in equity.
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