Wednesday, October 15, 2008

Big decline Again, Nifty continues in bear grip

The trend remains down. Downside momentum is so strong that even one day of up move is not being sustained. After the Nifty moved up on Monday, the next day saw a decline, and the day after - today has seen the Nifty fall by 190 points. That's a lot!

The 'good news' for bulls is the lowering of the resistance threshold. From 4000, thanks to new focus points on the Nifty chart, resistance has come down to 3600. This means, buying is suggested if the Nifty were to close above 3600.

What about the downside ?
There is minor support at 3200 - the lows made on Friday. If the Nifty falls on Thursday, as it well might, then traders should watch for 3200 support. If support holds, then there may be a 'Spring' - a buying opportunity. There are many 'IF's.
If support does not hold, we can expect a slide to 3000, or even 2600, slowly.

Buying is difficult in a Bear market.This seems reasonable, since the trend is down.

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