Wednesday, April 16, 2014

Are we following the global correction?


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Dow Jones industrial Average is testing its support  level of 16,047 and passing through a correction. The index corrected 2.6% this month and if it breaks its support line,then it could see new lower values. But it is just an correction, the overall trend is still up.
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The S&P500 is also getting through a correction and broke its primary support of 1,840. The index corrected 3.17% this month and could make new lower values. But the overall trend is still up.

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The NIKKEI is testing its Major support level of 14,000 and could see new lower values if breaks this support. The index corrected 7.88% this month.




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NIFTY also started to took correction from last two trading days and corrected 1.17% including today down move. The primary support for Nifty is 6650.

     We even do not know whether Nifty is getting into a correction or it is just an choppy period. While all major international indices are getting through a correction since the start of month and corrected 2%-7%. Nifty was moving upward against the global correction, which was a good sign for the bulls.

     Even if we are entering into an correction, then it should not be a big correction. Nifty could test its primary support level of 6650 but it is not sure it will break it down and enter into a major correction. The Nifty is outperforming global indices, correcting much less than other markets. This suggests that corrections may be minor dips or just choppy movements.


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