In my last Friday's post, I said market is looking overbought zone and correction may be due in near term. Compared to last Friday's closing and this Friday closing Nifty lost almost 130 points and standing at very crucial point S1= 4945, S2= 4920.
These levels are the very crucial for the markets. As you can see in above chart, Nifty spot is making almost Double Bottom kind of pattern & all other indicators, Stochastic, MACD & RSI are making Tripple Bottoms. So there is intermediate support at these level which may give little support to the market in coming week.
But if you see the below chart, there still pain left in the market from the 2-3 months perspective. Market is breaching 14 days EMA(Exponential Moving Average), which is considered as the reversal in the trend. And also if you see RSI & Stochastic they are still in downward movement & not in oversold region.
BOTTOM LINE:
So breach of 4920 levels leads to market movement towards 4800 level where market consolidated previously, so has a major support & by then all the GAP UP OPENINGS will be filled!!!
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