Today Indian market reversed most of yesterday’s gain.In a volatile seesaw week , Nifty and Sensex lost around 4% in today’s session.Nifty also formed a bearish candle.Now big question arises….. Is Nifty a way to make fresh runs downside? Scary one!
Monthly technical chart of Nifty shows the formation of the descending triangle. Nifty is trading near support level since the last couple of days and is likely to break either up or down.
We believe there is a high probability the Nifty will break down and make new lows.
Nifty is witnessing strong selling pressure each time it is trying to bounce back.
Trend analysis showed the dominant trend is downwards.
Strong bear candle on Candlestick pattern
Formation of new downward trend line with new tops are lower than previous one which is one of the characteristic of bear market..
Today Nifty found support near 8200 (Today’s low 8,198.35), recovered and closed the day at 8,253.80 down -343.95 (-4%).
We have to look for an 8200 level tomorrow. If Nifty breaks it decisively ,it will likely lead to a new downturn.
India is also facing a rising trend of Corona Virus infected cases.India’s and world’s GDP is slowing in last couple of months. Corona Pandemic ex expected to slow it further.
Latest stat shows India is having 1974 with 339 new cases.Globally also infected cases are just below 9,00,000. Global market also closed in red today. All major European indices closed more than 3% down.
In case of a fresh down leg , Nifty is likely to find strong support around 7500.It is a level from which Nifty had bounced back recently.