Nifty Correction continues

I had mentioned in my previous update that Nifty Index had breached the uptrend support line and is due for a correction. The index is in free fall and has taken support in the 4680 - 4720 region. A bounce can take place here as the index is oversold in the short term. Markets are not seeing short covering also and hence corrections to the fall are intraday and infrequent. A major correction can take the index down to the levels show in the chart.

Breach!!

The support line for the bull run in Nifty was finally breached today. Bears got their act together and pushed the index down relentlessly in a trending day. Bulls will try to support the index in the 4880-4920 region. A close below that will signal that the Bears have got the trend in their favor and mkts may see significant correction.

Nifty again at the Support Line

The Nifty Index is again at an all important support line which has been tested 4 times in the uptrend from March 09. This is the 5th test. The Index has to fight hard to maintain the uptrend considering a lot of heavyweight stocks are breaking down from the huge rallies which they have seen since March.

Nifty at bullish support line again

Nifty is again at the all important support line which has provided significant upward pressure on the index in the rally from the March lows. A close below 4900 will signify the dominance of bears and will liquidation by smart players.

Rupee Dollar breakout

The Rupee has stealthily strengthened against the US Dollar and seems to have formed a head and shoulder top pattern which gives a target of 40 Rs. to the Dollar. This will definitely affect the IT sector which has started showing signs of a breakdown on the charts.