The Big question: What is Nifty going to do now?
Here's the Nifty Daily Chart
As you can see in the chart above - Nifty is in nice uptrend. Since last few days - it has made a base at 7490. With 20 day moving average at 7480 - it seems Nifty has strong support at 7480-7490. Technically - Nifty should bounce from here back all the way up to 7700.
WHAT IF?: Nifty decisively breaks down below 7400 and goes down all the way to 50 day moving average of 7130. Will that happen? Anything can happen. Geo-politics in Iraq and sharp rise in crude oil price can spark a sharp correction but remember we are in Bull market. All bad news is buying opportunity in Bull Market. Shorting in Bull market is dangerous and bad idea.
Right now - Traders will be hoping for a bounce from 7480-7490 back all the way to 7700 with a closing stop loss below 7460. Having said that, in markets anything can happen and one should be prepared for it.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers