Nifty is down 3.2% for the week. Now a days Nifty posting a weekly loss is a big and rare news. This is the biggest weekly loss for CY2015. Since, Modi came to power in May 2014 - there have been only 3 weeks when Nifty posted a loss of more than 3%.
- Week of March 13 2015: Nifty posted a weekly loss of 3.2%
- Week of Dec 12 2014: Nifty posted a weekly loss of 3.6%
- Week of July 11 2014: Nifty posted a weekly loss of 3.7%
Not only weekly losses are rare but also they happen long periods of time. Nifty has been so strong for months now that it has not even dipped below 20 week moving average on weekly basis.
Here's Nifty Weekly Chart
The 20 week moving average is at 8546. Nifty currently is 1.16% above that level.
Where is the support on daily chart
As you can see in the chart above - Nifty has a solid support base at 8478. Do you see the first sign of sideways action
Considering how much Nifty has rallied over last 1.5 years...Nifty is giving first signals of taking pause...read consolidation. There is a high possibility that Nifty might see long period of sideways consolidation now.
"The market is a known sociopath that should never be trusted - especially when its intentions seem obvious." - Don Worden
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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