What is exhaustion?
The exhaustion is a stage at which buyers are tired out(in an uptrend), either because the price made a new all time high too fast with a huge gap (where the valuations are unacceptable for the buyers) or the price ran too fast into a resistance zone where the buyers do not want to buy because of supply risk at the resistance.
THIS IS THE THIRD PART OF THE ANALYSIS ON NIFTY 2.32% FALL. IF YOU NOT READ THE PREVIOUS ONE 2 POSTS, PLEASE READ THE SAME FOR BETTER UNDERSTANDING. I HAVE ALSO SHARED ITS LINK BELOW.
Last time we estimated a big downfall in the month of October and believed that IT Sector might stay in pressure as the results of Tata Elxsi disappointed and Number of TCS may...
This whole month what I've observed is that Nifty always fills the *opening gap ups/downs* usually the same day or the next day.
Could be useful for next such move by nifty.
As they say, history tends to repeat itself.
Please do you own analysis before taking any trading decisions.