Nifty gapped down but later recovered to close near days high with -ve breadth and increased volumes.
1.Nifty down by 0.4% with 0.33 breadth.
2.31st day of downturn from 5399(7th April).
3.3rd consecutive weekly close below 5Ema.
Nifty recovered nearly all the fall it had at open,that is a bullish sign.The last 2 falls ,Nifty has bounced up on each fall quickly,indicating that the buyers emerge at every low level preventing big downwards push to the Nifty.Also +ve divergences are there in oscillators(RSI).Downward scenario according to me calls for a crash in Nifty while the other scenario says that Nifty may have bottomed out today, for that Nifty should test todays low in next 2-3 days and should not breach it OR breach it by a small margin ~50-60 points and bounce back from there.We could see a really sharp uptrend if Nifty bottoms out around this 4800 levels.
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