I previously posted an article on Nifty50 titled- The Doji is here, and its bear-ly a good news (posted on 30th Nov 2018) wherein I wrote about the reasons why Nifty could turn lower (technical based) and it did!
Therefore, I would like to follow-up on the analysis.
The below mentioned chart details out the probably support areas, the first one can confidently be said as achieved even before the market opens in the face of the RBI governor\’s resignation.
One way the above analysis differs from the previous analysis is the level of the 600EMA. Previously the 600EMA stated a level of around 9754, however it has changed and now stands at 9950. Despite of the support level moving higher we cannot completely discredit the importance of moving averages as important support and resistance zones. I would like to go ahead and emphasize that the 600EMA in my opinion is only a potential target level and not the bottom. I strongly believe the correction will go deeper irrespective of the events like election results, President Trump\’s trade war inflicting policies, OPEC issues getting resolved, currency an interest rate. Interconnected as they all are, the signals of weakness and deep correction have already been given long ago. I will not elaborate on this right away. It is better to take one step at a time and go from one level to the next rather than factoring in extreme levels before hand and taking up ill judged positions in the market. Few stocks that I have posted about in the past that look good are as follows: YesBank- https://kavitatechnicalanalyst.blogspot.com/2018/12/yes-bank-giving-strong-technical-signal.html KPIT- https://kavitatechnicalanalyst.blogspot.com/2018/12/keep-it-moving-kpit-is-set-to-roll.html Balrampurchini- https://kavitatechnicalanalyst.blogspot.com/2018/11/balramurchini-and-bata-india-stock.html ( I am very eagerly waiting for price to fall to 90 levels so I can reenter) Britannia-https://kavitatechnicalanalyst.blogspot.com/2018/10/look-at-britannias-shares-your-evening.html (already run up 15% since the post) There are a few more names that you will find when you browse through my blog Wishing you luck! Did you know you can easily follow Let\’s get Technical if accessing the blog page in an inconvenience directly? Choose the platform you use the most and follow the link to follow Let\’s get Technical on the go!
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That\’s all for today! Adios!