Indian Stock Market Overview for 22 September 2015

THE NIFTY (Current Level - 7977)

THE TECHNICALITY · The above is a Nifty Spot Daily graph. · Resistances on NIFTY are 7998 / 8025 / 8055. · Support Levels for NIFTY are7957 / 7908 / 7853. · Since the major top of Nifty of 9119, the Indian market entered into a corrective phase. · The 1st corrective was completed followed by the `X' wave & then we entered into the 2nd& final corrective phase last month (check the above graph). · I have been reiterating that there is more scope of bearishness left in the market before it resumes bullishness. · Now, we are probably on the verge of completion of the current 4th phase within the 2ndcorrective, which is showing strong signs of a triangular pattern. Volatility in a big range was an obvious phenomenon in this phase. · Anytime soon the 5th phase of decline would open up trapping all the bulls. · Internal waves may show upward bias only to resume bearishness. · Good Luck...

THE OUTLOOK · The Outlook is clear. Decline is evident. The Indian Market opened handsomely lower yesterday while ended almost flat covering the initial losses. · The prime reason was the banking sector which exhibited strength on the back of the forthcoming RBI policy. The strength in the banking segment seems to fizzle out soon. · Whether or not the RBI cuts the rate or keeps it unchanged, in both scenarios we are heading close to a fresh decline in the Indian Market. · Volatility will be witnessed. A big NO to any bull side strategy. · Happy Trading...