Nifty had a moderate selloff from 6300 with higher volumes and -ve breadth.Important points for today.
1.Nifty down by 1.3% with 0.54 breadth.
2.121st day since the lows of 4786,10th day since the lows if 5937,4th day since the highs of 6338.
Nifty closed below 6200 and daily low 5Ema,indicating that daily capitulation is done/nearly done.Here Nifty may be at critical juncture,since tomorrow is a weekly closing and a close below 6200 may keep bearish options of a fall upto ~5500 open in November series.If Nifty bounces tomorrow and closes around 6250, then the correction may well be over and higher targets of 6400-6600 may be reached.But a weekly close ~6200 or below could keep me cautious for next week.If Nifty indeed cuts down to 5500 or below in next 1-2 weeks,I would expect a bounce upto 6000+ by year end but new highs on Nifty may be difficult to say.
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