06 Sep 2024 - Nifty loses 380 pts, will Bear attack start now ?Nifty Stance Neutral ➡️
Nifty has only fallen 379.95pts ~ 1.5% this week and it is pretty early to go bearish, but the structure gives a lot of hope for a bear attack. You all might agree that we are in an overvalued territory, even if we fall 20%, we might still be overvalued.
If you look at the daily candle, a strong double top is forming. For conclusive evidence, the markets have to trade below 24086, which is 3.2% lower than the current levels.
US markets fell last week and have a better-looking double top than ours. Again for conclusive evidence, we may need SPX to trade below 5137 which is like 5% below current levels.
I am maintaining a neutral stance and would like to go short if 24537 is getting taken out next week. Personally, I do not see us dropping below 24200 this week (I have short positions @ 24200 PE and may have to run for cover if we test those levels by Tuesday).
