NIFTY - down break out !!!

NIFTY gave a down break out of the multiple support level of 2810 yesterday and closed below that level. The RSI in fact was already providing advance warning signals of a down break.

On break below 2810 , now, the downward target initially was 2740 and below that 2670 - 2615 levels.



Nifty's close today is just at 2744 and i expect that a break below 2725 tomorrow (jan 14) should lead to further selling pressure towards the indicated levels. You may also notice the downward expansion in the bollinger bands.

Index heavy weights are negative and some technology stocks which were out performing till yesterday, may show some signs of fatigue.

Upmoves are facing resistance near 2800-2825 zone.

CA Rajiv D Khatlawala