Incidentally, if we take some direction from another emerging market - HangSeng Index, it seems that the Nifty is likely to remain under pressure.
The Hangseng chart indicates what we call a 'rounding pattern' (though it is strictly not a rounding top). Since the rounding is not at the top, we may target about half the normal down move... Even that would indicate that the Hangseng is heading for sub-18000 levels (current level is 20700).
And the Hangseng Index has a very high (97%) correlation to the Nifty !
Woops ... No doubt the world is so interconnected !
Happy trading
CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.
2 comments:
The nifty has a huge fall today.
The level of 4600, as indicated in your previous blog looked very unrealistic but now it does not seem too far.
The nifty has a huge fall today.
The level of 4600, as indicated in your previous blog looked very unrealistic but now it does not seem too far.
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