Nifty: Resumption of major trend i.e. DOWN!

Nifty 60 mins

As mentioned before, Nifty broke the level 5400 and capitulated on downside to close the day at 5281. The levels we have been mentioning as key support for quite sometime proved to be prudent and we are now headed to make new low for the year below 5100 atleast.

The downward trend has resumed and yesterday’s steep fall was broad based with participation from all the sectors. Not even a single sector was in green and this was one of the biggest fall seen since past 15 months or so. We have been constantly saying since Nifty started falling from 6100 levels that we are in for a bigger degree correction and many will be taken by surprise except our readers! For now, Wave X up is complete and ride the trend down as long as 5380 is not taken out on upside.

Over next 1 to 2 days we might see some panic selling happening due to increase in margin pressure and long roll overs on expiry day. These are the times when no fundamentals will work and the sentiments which now have turned bearish will be the key driver of the markets. The steep fall, if coincides with the “Budget day”, will be blamed on policy makers and the news media will find one more reason to explain the fall after it has happened!