These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.As suggested, Tuesday was another weak day.
The Nifty seems to be making a rough head and shoulders pattern, which could allow it to correct to 3970. It is a rough estimate. That would mean that the previous tops may be penetrated mildly. That could set off some triggers for bulls, who have been holding long positions, with 4030 as a stop.
The short term trend is assumed to be continuing down, and the intermediate term and long term trends are still up. Sharp dips may still be used to enter buy positions. However, please remember to allow a bullish pattern to confirm a bottoming of the Index.
The main culprit for this short term downtrend is the Bank Nifty, which is showing greater weakness than other Indices. As soon as we see support on this Index, we could see some other sector being distributed. This sector churn could allow the weakness to continue for a few more days.
Trade happy.
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