Blood Bath on D Street

Blood Bath continued on the D-Street, with Markets sinking deep in Red. Indian markets closed down nearly 3.5% with the highest ever turnover in the Indian Capital markets. With Expiry date nearing, volumes in the F&O surged drastically. Volumes crossed Rs1.58L Crs only in F&O, and NSE & BSE cumulative cash volumes were at Rs 24.5k Cr. Markets opened deep in red and continued to sink to close nearly 3.5% down. Nifty closed at 4853 down by 154 points and Sensex closed lost 490 points to close at 16289 levels. Nifty for the 6th consecutive day crashed down. Nifty after making a low of 4833, close marginally above the days low. RSI has been falling drastically. MACD has also given negative divergence.
Last time the Nifty in the month of Sep dropped down to 4806, but closed above 4941. That time also, I had mentioned that the Markets will correct further, but that did not happen, but the markets pulled up, and faced resistance at 5185 levels. Markets will continue to correct. We might see pull back rally but that will not sustain at the higher levels. Nifty will find support at the trendline. But the close below the same will take the Nifty to 4600 levels too. In the past too we have seen Nifty finding support at 4800 levels. Watch out for the same.