Near term pressure has led to a significant down move and a probable end of the long-term uptrend. For the near term a bounce can be expected back to 8300<>8500, but such a rally will not alter the significant deterioration in the broader outlook.
Even though it is too early to speak of a primary down trend, the outlook has become way to fragile for a bullish stance for the next 6-12 months. Decreasing exposure or seeking protection is certainly justifiable. As said, it is way too early to build up major short positions; it can easily take months before a new trend takes hold. Expect volatility and difficult markets for some time. Trading shorts only for now.
- Primary trend: negative
- Outlook: long-term trend reversal likely
- Strategy: exit-long long term exposure, trading shorts
- Support: 8030 / 7405 / 6950
- Resistance: 8382 / 8570 / 8762
Weekly chart NSE Nifty