Nifty went down today with moderate to low volumes and very -ve breadth.Important points for today.
1.Nifty down by 2.8% with 0.12 breadth.
2.33rd day of downturn from 5399(7th April high).
Todays selloff made a low that is 56 points below previous low of 4842.-ve breadth of 0.12 is a sign of nearing capitulation.Nifty is going down gradually and not in a sharp intense manner, that everyone is expecting.No of days of downfall,Oscillators and downside momentum to me point towards near the end of downturn.
My observation is that Nifty is taking out the previous swing lows by 50-60 points and then taking a break of 1-2 days.This is continuing for last few weeks.This is not a typical bear downturn.So I expect Nifty to make a move up again and then position itself for a big leg down.Though if somehow Nifty can gain momentum now , then I can expect a move to 4000 levels in this leg.
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