Nifty : Yesterday i read this word in John Murphy’s book “Technical analysis of Financial Market ” on page 4. It had one line which says ” A trend in motion is more likely to continue than to reverse”. It was an adaption of Newtons First Law. This statement so apt for the current market condition that we get so worried if the market slides down a bit and sell all our holding thinking the market is going to crash. Booking profit is not crime but not understanding the market dynamics and trading is crime. Yesterday without using any sophisticated mechanism and hi fi indicator but just purely on trendline that market will take support around 5050-5060 and we can easily see the market making low 5051 and closing at 5063. Can it be coincidence ,yes it may be. We technical analysts are not fortune tellers but we study our subject and try to come out with systematic guess about the market movement. The market may seem to bounce back from this level but heavy volume yesterday gives me some not so good looking picture for atleast 2-3 days . I expect the market to breah the trendline and nicely move to our support area of 4930 which is a mjoe lookout for any change in trend reversal.
Nifty
Great analysis Vishal….Nifty has indeed broken the trendline….
Thaks a lot Sujay for your comments , Hope to get more of these