Nifty- Next downside targets & when to start buying?
Nifty has breached 17041 (a low support target indicated earlier) and closed just below it. So the total correction in past 35days is around 1690pts & 9% down. FIIs have sold 31,000cr in Nov so far, since April they have sold for 101,000cr. FIIs are clearly spooked, DIIs are continuing to buy - eyes closed- so far have bought 20,000cr in Nov. How long can DIIs remain bullish-is a big question. Looking at global markets reaction to new covid threat will they also start selling also from Monday onwards? That will bring steeper fall....we could see some periods of brief pullback also.
At 10% correction, it may be prudent to start dipping into the market with a small portion of your cash (5-10%). Let us hope to hear some positive news on covid variant, there could be a quick recovery in sight as well.
Next targets on downside are - 16722, 16399 and 15769. The last target will mean a correction of 15%. Guess we will see moves to 20% or more in the near term, unless there is some positive news on the new variant.
If there is positive news and a pullback ensues with FIIs deciding to buy, we could see 17354 as the next resistance. 17041 is an immediate resistance to cross if there is an up move.
nifty options put call ratio (PCR) has fallen sharply and india vix has shot up. Not positive news.
Let us see how markets move from here.
At 10% correction, it may be prudent to start dipping into the market with a small portion of your cash (5-10%). Let us hope to hear some positive news on covid variant, there could be a quick recovery in sight as well.
Next targets on downside are - 16722, 16399 and 15769. The last target will mean a correction of 15%. Guess we will see moves to 20% or more in the near term, unless there is some positive news on the new variant.
If there is positive news and a pullback ensues with FIIs deciding to buy, we could see 17354 as the next resistance. 17041 is an immediate resistance to cross if there is an up move.
nifty options put call ratio (PCR) has fallen sharply and india vix has shot up. Not positive news.
Let us see how markets move from here.