The level of 5500 on Nifty
is keenly watched level and bulls and bears are in for interesting
tussle before this level gets taken out.
Here’s the Weekly Chart of Nifty
As you can see in the chart above – Nifty moved above 5500 in September 2012 on HOPE and since then has sustained above it. Also, on every correction post bullish move in Sept 2012, Nifty has managed to find support near 5500. So there will be hope among bulls that Nifty can defend 5500 this time again
What’s different this time?
Majority of the sectors and stocks are in terrible bear market. Even the sector that helped Nifty recover i.e. Banks appear to be in big trouble. So, bulls have very few friends to offer help. One stock that appears bullish is Reliance
Reliance after filling the gap has bounced. The chart appears bullish with upside target of 1100. But can Reliance alone save the market? I doubt that. Reliance can offer some resistance to bearish breakdown attempts but sooner or later – it will give in. At this point of time – anything can happen. Nifty can take support and bounce but eventually – fundamentals are just too -ve for market to survive the breakdown.
Here’s the Weekly Chart of Nifty
As you can see in the chart above – Nifty moved above 5500 in September 2012 on HOPE and since then has sustained above it. Also, on every correction post bullish move in Sept 2012, Nifty has managed to find support near 5500. So there will be hope among bulls that Nifty can defend 5500 this time again
What’s different this time?
Majority of the sectors and stocks are in terrible bear market. Even the sector that helped Nifty recover i.e. Banks appear to be in big trouble. So, bulls have very few friends to offer help. One stock that appears bullish is Reliance
Reliance after filling the gap has bounced. The chart appears bullish with upside target of 1100. But can Reliance alone save the market? I doubt that. Reliance can offer some resistance to bearish breakdown attempts but sooner or later – it will give in. At this point of time – anything can happen. Nifty can take support and bounce but eventually – fundamentals are just too -ve for market to survive the breakdown.
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