Weekly Market Recap
For the past few weeks, I have alerted…! my sincere readers and clients that something untoward and perplexing is happening in the market which is not propitious for the bulls and investors should try to exit at higher levels. Looks like my warning came just in time as we have witnessed a torrential fall in the market this week.
In the week gone by the benchmark, SENSEX tumbled 2225 points, or 3.9% to settle at 54835, similarly, NIFTY plunged 691 points, or 4.04%% to close at 16411. And BANKNIFTY closed dived over 4%.
Current Outlook
I have written a lot about the taking place technical configuration in the past few weeks. The salient feature on the chart since October is, sold on the rise, though the sharp rallies from the bottoms had been quite sharp which made it tough for the investors or buyers to exit at the higher level in anticipation or felt like, rising more. While the shorter has been squeezed quite badly at lower levels. This is the important characteristic of nasty distribution where investors are being cajoled to buy at a higher level.
Has the bottom arrived? After analyzing the charts profoundly in different frames, I think the answer is NO. Once the distribution is over, the mark-down phase starts where prices start to fall sharply and smoothly as there is no support from the smart investors or institutions, but the public interest remained high. Even on the given daily charts, the indicators have enough room to fall further before the oversold condition appeared. However, it is indispensable to note that so far, after the sharp fall a pause or small rallies have been witnessed, but that does guarantee to give you another chance to exit at a higher level.
Conclusion
The given technical setup is suggesting much lower targets on the price unless something changes significantly. Apart from technical setups the macroeconomic indicators are also not enunciating a better picture for the stock market in the near term. Hence, keep analyzing and be patient.
Feedback, comments, suggestion, or questions are welcome in the below comment section or at [email protected].
Be Patient; Be a Savvy Investor..!!
Pankaj