Nifty 50 has touched the levels of 9700 levels this week after a much appreciated rally from 7900 levels to 9700 levels in just past 6 months giving a whopping return of 22%.
Nifty had given a breakout of CUP AND HANDLE pattern @ 8900 levels.
Now talking about what is happening recently. The double top formation in Nifty 50, The divergence in Nifty 50 from last few months indicating weakness in markets. The RSI support line also broken...
All this reason indicating correction in the markets.
The Short term support line also seems to be broken.
Next support @ around 9530 and break below this level can easily take markets to 9300 levels and break below this level will take us to 8900 levels which is the breakout line of Cup and Handle pattern.
Even the sensex broken the long term support line...
Now talking about the midcap Index.
Last time when Midcap index corrected after a long rall,. it took support at 50% retracement levels.
Right now, the midcap index is @ 16700 levels and I expect market to give a 50% retracement again and reach to levels of 16100 which is also the top of previous rally. Why don't you check out the chart
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Disclosure: It is safe to assume that i might have the above mentioned stocks in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments. This is not a Buy/Sell call but just meant for reader Education purpose.
This article is contributed by Prateek Dhuper on Sat Jun 24 2017 14:01:01 GMT+0530 (IST)
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