In our previous post we mentioned about a trade from 7300 to 7600 which worked well.
In this one we would wait for a reversal signal in coming days. Although technically 7200 +-100 points remains our support zone and buying area its always tough to get every bottom right. Its easier to react on reversal.
Just two quick charts
Nifty Falling Wedge in 2011 saw a little dip below the support line.
Todays low in Nifty is closer to 200 week ema and has not breached the lows.
A major signal of reversal would be above 7650-7700 but a move beyond 7350-7400 will be the first signal to start buying into.
Even global markets like Dow Jones / DAX and Nikkei etc are getting close to long term supports.
February 11, 2016
Nooresh Bhai, As usual your post as come at right time. Market as come to expected point around 7200+-. Hope to see a reversal even if it doesn’t happen it is wise to buy as stock prices may not go down below current lows.
Indian growth trailer is over, now it is time to be a part of Indian growth movie.
February 11, 2016
nifty below 7k,.so falling wedge out of scope now,.nifty will rebound from 6800-6900 strong support
February 21, 2016
Firstly, thanks for these superb articles. Its rare to come across someone whose so transparent. I just had one comment – for Indian markets to bottom out the way they did in 2011, US has to find its bottom as well. Without US stabilising, it’s impossible to be certain of a renounce on Nifty. Don’t you think we will have greater confirmation if S&P500 VIX say touches 35-40ish levels and markets fall sharply on big volumes for us to be relatively sure of a bottom. So far, we haven’t really seen it in 2016. 2015 yes, we did have that conformation, implying a short term bottom was in place. Please let me know what you think
February 26, 2016
Abhishek,
Panics do not come with much of a warning also you cannot always catch it with same parameters.
In 2008 VIX touched 60 + never really happened before.
So lets see how it goes.