NIFTY BREAKDOWN ON DAILY CHARTS. DOWNWARD SPIRAL BEGINS.
Nifty has been maintaining key support levels and making higher top higher bottom structure since post- demonetisation rally started in Dec 2016. Alas..All good things have to come to an end at certain time. In all previous corrections, Nifty was finding support at 60SMA and bouncing from those levels to make new highs. This time around, though Nifty found support around 60 SMA, the bounce from those levels was feeble and week.Today, in spite of all positive global cues , Nifty chose to head south. The twin supports of 10276 and 10302 established in Feb 2018 were broken convincingly. We may get to know the reason subsequently but downtrend is firmly established and it is here to stay for next few months. There are important support down the line like Weekly 50SMA support around 9950 and major support levels of 9685. Expect nifty to test 9685 in couple of months. If you are long, reduce your equity holdings and wait for correction to get over. However, don't catch falling knife and go long in falling market. We have a feeling that this may be a prolong correction and this is just the beginning. We promise to update you regularly as the events unfold. Till then, Happy Investing.
Disclaimer : We are active Traders & Investors. We have active positions in Nifty Options with a bearish view on market for 2018.