Nifty broke 5350 today towards the end with moderate volumes.Important points for today.
1.Nifty down by 0.8% with 0.8 breadth.
2.5th day since the highs of 5475.
3.1st weekly down of more than 1% since the start of the rally from 4786.
Nifty came down during the last 1 hour.This week was down week,with only small retracements of the fall on 2 days.Nifty broke the previous days low on each day of this week.The breadth was -ve but not too -ve on any day of the week.Also price action is limited to within 1% till now.This all indicates that -ve momentum is there but there is no capitulation as yet for this fall of 5 days.I expect this fall to first take rest around 5100-5150-5200 zone.The Journey after that could be sharp and swift.
My scenarios say that either Nifty goes to the 5100 by next week and bounces to highs/new highs for 2 weeks and then reverses for the big down OR
Nifty may make a big cut next week,or the week after next ie this leg of fall itself could lead to big cut.
These two are the likely scenarios that I foresee,But Nifty's price action and momentum will show us What Nifty may actually be trying to do.
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