Nifty continued with its down movement with very -ve breadth and high volumes.Important points for today.
1.Nifty down by 1.4% with 0.15 breadth.
2.21st day of downturn from high of 5399.
3.5th consecutive down day(all days in the week were down).
4.-ve price action in the past 21 days has not been more than 2% on any day.(This points to moderate intensity of selling pressure).
Todays -ve movement with 1:7 breadth shows signs of selling capitulation.This -ve breadth indicates that either short term bottom is there OR the bottom should be around the lows of today.The other scenario is that there be a big crash like downside movement in next few days.In 21 days of downmove , Nifty has retraced about 57% of the 725 point rally.If Nifty were to reverse from here next week or there after, it should not go below the 60-70% retracement zone of the entire rally ie above 4900.We should get clues about upmove, if any, by next week in which case the rebound rally can go past 5400 levels.
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