Dated :- 13.12. 2015

                                                                      NIFTY SPOT : 7610.45

Hi,

Readers,

In my previous blog dated Dec 04, 2015 I wrote that I will be out of town and will be updating the blog after coming back.

Now I am back to work.

Nifty is coming down continuously after it broke 7820. Now today it is standing at 7610.45.

Now What :-

As mentioned in my earlier blogs Nifty is in a down trend and it is that downtrend which is bringing Nifty down.

Now with the close at 7610, Nifty has made one more bearish head & shoulder pattern on weekly charts. The targets of which I do not wish to write because they are scary. And I do not want to scare the readers. We will keep on writing and riding the moves as they happen.

Now more downside levels of Nifty are opening up and the technical setup is very bearish.

Now even the die heart bull would have been scared.

Let me write what I can see on the charts :-

My analysis of the charts are saying that the setup is very bearish and more and more downside levels are opening up.

But when I ask the question to my charts that when to expect those lower levels the answer I receive from my indicators is interesting. They keep mum and say we will be oversold very soon and may also lack power on immediate basis.

My special strategies are indicating that the charts are not ready for the run through down move. They want some more time. The kind of set up Nifty is having at present, chartically, I would like to see Nifty spending some more time in some range or rebound.

To me, 7540 is not important level which almost everybody in the market is looking for, but for me, as per my analysis 7454 is crucial important level. I give more weight age to 7454 then 7540.

If Nifty stays below 7454 then the immediate and run through down side will open. But the indicators are saying that they will become deeply oversold till or even before 7454 comes. And they would force Nifty to either go into a range again or to pose a sharp rebound. I know, that, News flows are very bad and no result in ongoing parliament session on GST and Yellen’s decision of Fed rate hike can ruin the markets. Still I am writing purely what charts are saying as of now.

However, if Nifty defies the charts and stays below 7454 then further downside on immediate basis will open. This situation is not likely to occur. It is only major bad news event which can do that.

On an immediate basis I would not be ultra bearish. I would rather like to either stay out or would like to play the rebound around or even before 7454 comes.

Although stock specific still there are many selling opportunities available.

Do keep in mind also that the news events in front of us in next few days may be very bad and they can create panic in markets also. Because news events do not care for charts. Be nimble footed and ready to exit if news events create havoc in markets.