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.
Am going to keep this short. Nifty’s price action suggests little more downside is on its way. However I was wrong in anticipating it to be a free fall towards 7400. Rather than a free fall we witness a zig zag fall in place for nifty. This shows how strong our ongoing multi month bull run is. 7400 is going to stay, and it would be interesting to watch out for how Bulls behave once hitting this level.
The trends for the day.
Long term Trend: Correction to the ongoing Bull Run. As long as we hold on to 6580 we will not turn negative on the long term view of Bull that we hold.
Intermediate term Trend: Trending Down. Looking at the trending pattern on the intermediate time scale, am not fully convinced the way it unfolds. Any positive move above yesterday’s high at 8044 will change the pattern back to neutral.
Short term Trend: Trending Down. The trend will not change until we close above 8200, which means 8200 would act as SL for those who are short in Nifty.
Stay tuned for tonight, as I answer some stock related questions that we have received for the section “ask Pathiyil”