NIFTY (4346)

It was no surprise. This was to come, if not on wednesday then on thursday, but since global markets turned around yesterday after a small pullback we opned with a big gap down and since then there was no recovery for the whole day.

Two days before the fall started I posted 10 year chart for both Sensex and Nifty just to show you`ll that things are not going to be good in coming days till some sizeable correction takes place. I even said in my post of 30th July that this is not a running correction and proper corrections don`t end in 1 or 2 days fall, hence the pullback of tuesday was not going to sustain for sure. It was a good opportunity for fresh shorts on the pullback, but considering an excellent closing at days high on tuesday, many would have postponed their shorting for wednesday but steep fall in global markets did not give opportunity for fresh short near 4500 levels.

Pivot Point trading levels for 2nd AUG is as under.
S2 S1 PIVOT R1 R2
4213 4280 4406 4473 4599

Pivot Point trading levels for the Week 30th JUL - 3rd AUG is as under.
S3 S2 S1 PIVOT R1 R2
4139 4282 4363 4506 4587 4730

Pivot Point trading levels for the Month of AUG is as under.
S2 S1 PIVOT R1 R2
4150 4339 4494 4683 4838

20-DMA 4487
30-DMA 4424
50-DMA 4340

Resistances on the way up are at 4364, 4433, 4503, 4590. Support is at 4294, 4224.
These are not for any particular day and are valid for MEDIUM TERM.

Now nifty has so far already corrected 6.6% and Sensex 6% as compared to many other markets which have corrected 9% like Brazil, Ftse, Cac, Dax, Taiwan.

Currently Nifty is falling 200-250 and pulling back 100, then again falling 200 and hope to pullback some. So far falls are more then the pullbacks. Today once again Nifty has gone in oversold territory hence pullback is like to be seen if global cues are supportive, which can take the Nifty to 4412.

Yesterday Nifty closed at it 50-DMA support and also Monthly S1 @ 4340. Whether this support holds tomorrow is to be seen. First sign of bullishness will only be seen if we close above 4424. So far the correction is 6 days old from its all time high of 4648 on 24th July. Various indicators are pointing towards a lower target for the Nifty which I have in mind, but its a bit premature to say it currently.