The Nifty continued it's downward journey today too (June 24) and touched a low of 4156 before closing at 4190 (The above chart from icharts.in is not updated for today's price action)
On the daily charts it is oversold and prices are getting 'far off' from their short term moving averages. Prices have a tendency to 'rebound' to their short term moving averages in order to complete a correction and resume their move.
Accordingly, for those of you who take a 2-3 days view, I expect that a fall in Nifty may now not be a good short selling opportunity. Rather you may look for a short term rebound to 4345+ levels in the next couple of days. This also means that I expect down move from here to be unsustainable for a couple of days.
The Nifty , after correcting itself , may then tend to resume it's down journey.
So you can expect some relief from the 'red flashes' on your Terminals!
CA Rajiv D Khatlawala
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