Nifty Daily.
Nifty Weekly.
Nifty on a Wing and a Prayer.
Closely observe the Nifty weekly chart. It tells us just one thing, that the Indian Benchmark Index is moving in a Greed and Fear cycle, with the investors ( mostly the late bulls ) joining hands & praying for the prices to go up while Nifty just managing to stick to the range of previous candle.
In our previous post we mentioned that Nifty is expected to fall approx. 5950-60 and the index paid high respect to our levels. Nifty made a low of 5936 and made a come back. The ongoing upward channel got broken and pushed the prices down to the levels mentioned by us. But this free fall from 6239 till 5936 made a big bearish candle on the weekly charts. From there on we saw a reversal and Nifty moved to it's 61.8% retracement of the fall.
A close look at the daily chart tells us that during this price retracement, Nifty just managed to touch the channel line, but could not pierce it to bring back the momentum. Coming back to the title of our previous post we mentioned that Nifty has started showing signs of maturity. And yesterday's fall makes our view all the more strong. On such circumstances when market changes direction, the price movement shakes the investors by drawing them towards the panic camp.
Another factor to be noticed in both the weekly and daily charts is the bearish divergence ( see the pink dotted lines in the indicator.) A fall in the RSI on both the time frames makes the sentiments more bearish as if trying to say that this up move on the daily charts was probably the last effort by the bulls. And a fall in the GDP numbers just acted as a concrete factor to push the markets downwards. But this rally could not shake the weekly charts and price clustered within the range of the previous bearish candle.
From now on we can see the bearish sentiments prevailing even on the 60 mins chart, indicating a further downfall. As per the levels, a break below 5930 will push the markets towards the range of 5850-65.
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