Dear All,
The charts of the S&P CNX Nifty show that we have broken down from a descending triangle pattern with a gap down which usually is considered to be a strong down move. If a target has to be set then the first target for this fall would be 10% lower from the breakdown point which comes to 4815 - 4825 considering that the break down happened from 5361 levels.
We however believe that since we have had a 5% fall this week, we will spend the coming week consolidating and then the week after in a pullback mode. Ideally we believe that the pullback till 5360 / 5350 should not be ruled out in the coming 2 weeks. However the 5350 / 60 would be a good level to short again and this time around expect a fall till 4800 levels.
According to us large cap stocks such as M&M, TCS, SBI etc. of the world would be strong candidates for a buy since they would lead the pullback.
Our Previous Post: http://denipconsultants.blogspot.com/2011/07/s-cnx-nifty-still-bearish-dewang-k.html
Thanks,
Dewang K Mehta
DENIP Consultants
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