NIFTY - TREND

 

The present Nifty chart is showing signs of Nifty cracking. Levels to watch out for would be the 200 DMA (shown by red line on the chart. The next support is provided by the 200 DMA at 4650, after the conestion based support at 4750 was broken yesterday. If the 4650 support breaks we have another congestion based support at 4600. A break of this support would herald the beginning of a severe correction because then we would have a lower bottom in place thus breaking our uptrend principle of higher tops and higher bottoms. Investors would do well to book losses whenever stop losses targets are hit and not initiate any long positions until a clear uptrend is established. Going short is also not advised at this stage as the market looks technically oversold and a short squeeze could result in a sharp rally. So stay out till the market gives you the next signal in either direction.