More than 4% tremor in US markets yesterday and Tsunami in Pacific and Indian ocean. Resultant all the sea shore Asin markets crashed and weeping Red tears. As deep down was expected therefore following line was told yesterday in Pre-closing Outlook(04-08-2011):-
"no hope for Bulls as well"
Nifty-EOD Chart(04-Aug-2011):-
Global calamity and now it has to be watched that what is ruined and what is finally saved. Following rescue levels should be firstly watched today;-
1- 5253(Strong support but will be broken down after gap down open)
2- 5178(Next Crucial support)
It is clear that 52 week low will be formed today after gap down opening today and that will be due to US markets crash. 5178 is most crucial support because Indian markets got support near about this level many times in 2010 and 2011.
5178 and 5253 are most crucial levels because Nifty struggled more than one month near these levels in 2008 and crashed more than 3000 points after failure of these levels therefore survival of 5178 will be watched today and in the coming sessions. Possibility of slipping below 5178 can not be ruled out but firstly closing around it today and sustaining around it in the coming sessions will be watched because:-
1- Sustaining below 5178 will be one year structure failure and will mean steep fall.
2- Sustaining above 5178 will mean ongoing correction completion and will be first indication of up moves beginning. As many resistances at higher levels and all the trends are down therefore market require complete consolidation for any sustained up move/rally.
As Indian markets will start from sharp fall therefore panic bottom formation possibility will also be kept in mind. All the mentioned possibilities should be kept in mind and will be the best to get confirmation :-
1- Firstly through today closing beyond 5178
2- sustaining beyond 5178 in the next week.
Let market take position then next moves will be decided and posted in the mid sessions outlooks.
"no hope for Bulls as well"
Nifty-EOD Chart(04-Aug-2011):-
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| Just click on chart for its enlarged view |
1- 5253(Strong support but will be broken down after gap down open)
2- 5178(Next Crucial support)
It is clear that 52 week low will be formed today after gap down opening today and that will be due to US markets crash. 5178 is most crucial support because Indian markets got support near about this level many times in 2010 and 2011.
5178 and 5253 are most crucial levels because Nifty struggled more than one month near these levels in 2008 and crashed more than 3000 points after failure of these levels therefore survival of 5178 will be watched today and in the coming sessions. Possibility of slipping below 5178 can not be ruled out but firstly closing around it today and sustaining around it in the coming sessions will be watched because:-
1- Sustaining below 5178 will be one year structure failure and will mean steep fall.
2- Sustaining above 5178 will mean ongoing correction completion and will be first indication of up moves beginning. As many resistances at higher levels and all the trends are down therefore market require complete consolidation for any sustained up move/rally.
As Indian markets will start from sharp fall therefore panic bottom formation possibility will also be kept in mind. All the mentioned possibilities should be kept in mind and will be the best to get confirmation :-
1- Firstly through today closing beyond 5178
2- sustaining beyond 5178 in the next week.
Let market take position then next moves will be decided and posted in the mid sessions outlooks.