A return from 4906 but died in just few hours. This is what I am saying from past few days. Bounce but no bounce can sustain. To be honest, I was expecting little more bounce from both crucial supports, first from 4950 and next from 4904. Well, I cannot demand from market as it has its own way.
There is no sign for any immediate remarkable recovery. I must say that until and unless it comes by its own do not believe that it is really coming.
I am expecting that can have few choppy sessions with some rise of 2-3 days (Which might be volatile in those small ranges) but it will slowly move towards 4790 support zone. I am unable to sense anything yet which can say me about recovery higher than 5040. So it is still a sell on rise kind of market.
Intraday update : 11:45am :Broken 4904 - No recovery is sustaining. Seems we need to prepare for 4880 and 4850 also. Its the third time that recovery has refused by market.
Intraday update : 11:45am :Broken 4904 - No recovery is sustaining. Seems we need to prepare for 4880 and 4850 also. Its the third time that recovery has refused by market.
Ratio analysis suggests that above two levels will be crucial. Let us see how those are developed. (I am giving description rather than imposing my levels on you).
- 4790 – This is 76.40% from 5631 (of rise from 4531 to 5631).
- 4913 – It is derived from its first impulsive fall from 5631 to 5268. We have next top at 5499. Take 1.618 times of 5631-5268.
- Suppose if we go for 2.618 times of correction which is likely. Then we will see levels of 4551.
Now it is the time to look at few crucial technical indicators (I am not a very firm believer of this kind of indicators).
RSI – This indicator is right now settling at some lower levels. It was at 30.62 when we were at 4531. Right now it is 28.85 when we are above 4900.
Can I conclude for more falls from here? Looking on indicator I need to say yes. (Few days back I have a presented a study on Axisbank which slipper by more than 15%). I cannot give a very higher weightage but I cannot ignore this.
Developments on Europe are not pleasant. Few days back, I quoted as, “This is the beginning of another massive mess”. News flows are confirming now. Coalition parties failed to for government at Greece
Depending on market condition we will release intraday updates too. Till that time, you can post your views also so that I can present better result for you.
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Praveen Kumar
Mail id – Praveen@viecapital.com
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