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Last few days I have been constantly updating the viewers about the, Nifty major resistance at the trendline. Yesterday’s close of Nifty was below the trendline (circled in the chart ). In the last few days the Nifty have been testing both the trendline (up & down). Finally at the end of the triangle pattern of the convergence of both the trendlines, yesterday Nifty closed below and today also the downward slide continued. Major depreciation in the value of the rupee to dollar and sky rocketing crude prices lead the carnage in the Indian markets.

In the last 3 days banking stocks have been shuttered badly. In my blog that was posted on 20th May it was mentioned that the close below 5030 will take the Nifty to 4900 atleast. It was also mentioned that the Nifty can touch 5400 levels but the support was also clearly mentioned. Today major support of 5010 was broken. If the Nifty makes a new low below 4900 and closes below that then the lower top and the lower bottom pattern will be formed that can again take the Nifty at least till 4750. According to the fibonacci theory 4900 seems to be a very good support. There is a temporary hault upside. See the chart for clear picture. In the morning also it was mentioned that the if Nifty trades below 5030 then book all profits…..

Inflation was flat at 7.82%.