For past 6 months, Nifty managed to stay in a range but now it appears like external forces are forcing range breakdown. Were you prepared? How far below Nifty can drop!!! Are charts telling us anything?
Below Nifty daily chart displays range breakdown and next significant support appears to be near 15800 area. Surprisingly, RSI never breached 30 mark in last 6 months and market was never oversold. A drop from this level shall take RSI into oversold territory. MACD is well below zero mark and trending down for now.
Nifty advance decline line is in downtrend from beginning of this year and market have had tough times to sustain any rally attempt. Lets wait for MACD to roll over above zero mark.
Stocks above their respective 50day & 200day moving averages is trending down which is not s good sign for overall market.
Charts were telling us for quite sometime that market internals were not looking good and even deteriorating even further. Due to war times, we may end up getting a sudden overnight gap downs or sustained selling for few days. No need to jump in this market for now. Soon market will find the bottom and provide some solid opportunities. Use this time to find stocks which are holding well with relative strength (Stock Selection Technique).
Good Luck!
Market remains in correction mode for now....
Good Luck!
Market remains in correction mode for now....