History repeats itself….. Nifty opened in the negative zone on back of world markets. On Friday, I have mentioned that the trend will be cleared within 1-2 days. PLEASE READ MY EARLIER BLOG POSTED ON 22nd FEB 2008.
Investors can refer to the message, which was posted on 22nd Feb 2008, in that I have clearly mentioned that till the time the nifty close is not above 5400 “NO TEJI”. ON 21st of Feb 2008 I have also mentioned that the close below the “Support” trend line, can pull down the Nifty till 4800 levels. And as per the Lower top and lower Bottom formation the Nifty can tank till 4800 levels.
As mentioned earlier that the “Support” & the “Rest” trend line in very crucial level to decide about the trend in Nifty. In today’s chart investors can easily see that the Nifty close is well below the ”Support” trend line. As soon as the “Support” trend line was broken there was a huge sell off in the market. As a result Nifty closed at 4953.
Nifty 23.8 % retracement level from 6357 & 4448 is at 5177 and my convergence of “Support” and “Rest” trend line is almost at the same level. So there was double confirmation of the Nifty moving either side. Bears took the front seat and dragged the Nifty down till 4953 levels.
The next and the major support are at 4800 levels. I had also mentioned that the close below 4800 levels could bring the Nifty to the 4450 levels also.
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