The Road Ahead
Nifty is placed critically having broken 3850 and closed below. Incidentally 3850 is a five year trend line support. This support has been broken for the first time. Also among the firsts is the break and close below 4070 which is the 34 month EMA support which again Nifty has never broken.
The fear factor is rising with every passing day . Nifty has already lost approx 40 percent.
We are yet to see mutual funds selling .
Where are we heading to now
I dread to think of the turn of events if Nifty starts to trade below 3850. At 3600 levels we have our last hope.
The mood on the street is pessimism at its best. Universal opinion is to short the market. But also remember the best trend reversal comes when people are either extremely bullish or bearish.
The daily charts are coming into over sold position hence I see a small bounce back possibly on Friday or early next week.
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