Ring a ring a roses a pocket full of poses ti-shoo to-shoo WE ALL FALL DOWN!!!

You must have heard about this nursery rhyme when u were 5-6 years old, sometimes the effect of this rhyme is seen in stock markets too. Starting from yesterday DowJones started to show some kind of weakness, falling about 100 points in intraday and then recovering sharply to close only 10 points lower, then Asian markets started to show weakness and were down 1% each at end of day taking Our markets down to 1% and then Europe and DowJones Futures followed this cue and at end of everything DowJones is down 140 points as i post this article on the blog. That's why it seems to me as " We all fall down ". This cyclical downturn in global markets may have been sparked by Dollar snapping back from its 15 month lows and it could be normal profit booking which was long overdue.


Nifty View:

Some say we can see a fall upto 4500, ( extremely bearish people say 3800 ) & some are expecting it to be just a profit booking. Whatever it may be that only time will tell. What Nifty has done is , it has finally given some winter break to bulls or else there were also talks of one side upmove to 5400 which would have taken everyone by a surprise rather " Shock ".

Nifty has rallied non stop from 4540 to 5075 levels.There are various good support levels from where markets can bounce back:
1) 24 % retracement of the move + 50 dma = 4945
2) 38% retracement + Double bottom made on 10th and 11th Nov = 4865
3) 50% retracement + Red trendline = 4805
Just watch out for these levels


Have a nice trading day!!! Do not make over leverage positions

Regards

Ankit