Dated :- 10.01. 2016                                 NIFTY SPOT : 7601.35

Hi,

Readers,

Nifty moved exactly as was mentioned by me in my previous blog dated Jan. 03, 2016.

Wherein it was mentioned that Nifty is not fulfilling the condition of crossing 7997 and if it does not cross that level than Nifty will come down to 7800 and even lower levels.

Same happened,

This is all God’s Grace.

Nifty cracked fast and made a low of 7556. Honestly the fall was expected, but not by such furious pace. But, this is markets for you which decides it pace itself.

Now What :-

Now till the time Nifty is below 7830 it is sell on rise. Also there is a gap in Nifty daily chart, gap will stay till Nifty is below 7721. Now, that is also another important level for Nifty.

Although Nifty is oversold, but, in current pattern my analysis is that this current scenario is the exception of oversold situation. That is there are times when one should not give much weightage to the oversold position, current situation is one of that only.

Current fall is standard signature pattern of Nifty fall happened in past also. Indian markets have followed this pattern pin pointed in past also.

Expect lower levels in Nifty and keep selling on rise.

But, Remember that whatever lower levels we are expecting in Nifty should come in this coming week only and then I expect rebound for once or relief rally. Thus it is recommended that short selling should be done only in first few days of the coming week and after that one should not have short position. Because then rebound or relief rally is expected.

Trade accordingly.