Here's what ICICI Bank stock did for long time :
ICICI Bank stock created a base at 283 and kept bouncing from there. Since 283 level was above the breakout level of 245 which ICICI Bank stock broke in 2014 - the level of 283 was construed as a bullish base. But then finally stock broke down below 283 - and everyone looked at 245 as next level of HOPE. It also coincided with 200 week moving average - making it very solid support base. But...
When markets are in mood to breakdown - the lines on the chart are like lines on sand near beach. One incoming wave of water from sea and they disappear.
Have a Look at Nifty daily Chart
Just like ICICI Bank stock was building base at 283...Nifty has been building base at 7550. Now, Nifty looks little shaky around 7550 and what's even more disturbing - If market is bullish, then why Nifty is not getting adequate support around current levels.
Nifty is still trading around 7550 and one can still hope but if Nifty continues to weaken, then HOPE might turn out to bad strategy and market can witness significant time and price and time correction.
We have seen in the past: Market can inflict huge pain just when you least expected it. The Charts are telling only one thing right now: Be careful and don't HOPE too much. Let the market make the first move. This is not the time to hunt for bottom. This is the time to take shelter and wait. Let the big and brave money fight it out
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