Bottom Line: We are in last leg of the first correction of our multi month Bull Run. We will not enter Bear trajectory until Nifty breaches and close below 6580 for three consecutive days.
What a day it was! A Monday to forget, unfortunately not. As I said last week, the unconvinced up move 7940 has eventually faded out and we have started with new (probably) last leg of this correction phase. This is a correction only and looking at the nifty chart in different time frames, it is clear that we have more points to go down before we conclude saying the correction is over. What are we looking for, on the downside? This is how most likely the nifty is going to move in the coming weeks.
A free fall until 7430
An up move (dead cat bounce) all the way till 7940
A zig zag move towards 7430 – 7250 – 7090 – 6940 – 6810
Remember these zig zag moves, not necessarily need to be met: the reason is we are in the first correction of a multi month bull rally. Averaging or re-entering could start from any of these zig zag levels. Of course yes, I will be updating as it unfolds, however as I received many calls yesterday asking how far it can plunge am updating these possible levels on Nifty. Can you see bottom line at the top? Am going to update it until we are done with the correction. Hold up your cash to re-enter markets or average stocks once correction is done.
A small reminder: Kindly do not stack up positions based on margins, it might damper your entire capital. Will let you know when the time to take leverage is ready.
Note: There was a problem with blog updation for the previous weekend and yesterday. Hope this has resolved and will start updating on stock queries that I received starting 26th. If you have any questions please use the contact form placed on the left panel of this blog.