nifty 21-9-15

THE TECHNICALITY · The above is a Nifty Spot Daily graph. · Resistances on NIFTY are 7998 / 8025 / 8055. · Support Levels for NIFTY are 7956 / 7914 / 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. Current phase will remain volatile before the market resumes its main trend i.e. bearish. For, now downside appears to be more appealing. · Stock specific trading would be rewarding provided you time it properly. · Banking sector would drive some momentum as RBI policy is due but the momentum will fizzle out as it is technically weak. · Sector wise inverse movements would be witnessed. · Happy Trading...