'Nightmare on dalal street' continues for bulls. Even a strong counter-charge by the bulls fizzled away in the end and they were pegged back deep down ,staring at even a steeper fall ahead. We wrote before, that violation of 5813 and the trendline would wake up lot of bears and bulls would run for cover. However, the low made by Nifty future on 28th Feb, 5673 [ from which a sharp rally of 300 + points took place ] was a good support zone - in fact the range 5670 - 5700. It held on today for quite some time, but grudgingly gave away at the fag end. Daily and weekly chart looks scary as a result. But then, is it totally a lost case for this market to bounce back ? We believe only silver lining for the bulls today was the absence of a complete, swift and sharp breakdown in Nifty future when it broke 5670 zone towards the end of the day. That somehow speaks of a little lack of conviction on the bears' side. However, this is not enough. We believe, bulls have a last chance tomorrow to take Nifty futures back to at least into or above 5670-5700 zone to keep the hope of a meaningful bounceback alive. Otherwise, daily,weekly and monthly chart of Nifty would acquire a very sorry look and bears would happily add on to their position.
Retail traders, as we also wrote in our last post dated 19th March, should do well to sit outside.
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