Nifty moved impulsively down!

Nifty 120 mins

Nifty 30 mins

Nifty has moved down impulsively from the highs of 5900 to 5440 levels. Indian markets have been quite difficult for trading for most of the traders given the steep movement that happens on either of the directions. Since past couple of months Nifty has not done anything and on net basis lies near about the same level but has seen big movements within the range. It has not moved decisively in a clear trend making it easy to lose money on both sides of the trend. So please be cautious as we can move in a very big triangle making it much more difficult but that remains a low probability scenario. For now, as seen on Nifty 120 mins chart, RSI which has entered into extreme low reading near 17 has come out of oversold state and touched 50 levels as we were expecting and making room to go down again. The movement in second half of the day yesterday broke below the short term trendline and down move could have started.

We are now bearish on Indian markets as long as 5600 is not taken out on upside but would remain cautious unless we get further price confirmation below 5490 levels!