Today Nifty might have dropped just a percentage but we saw a sharp 3-5% decline in the Midcap and Smallcap Index.
Is this a Healthy Correction or a Trend Change ?
Lets look at the charts technically on simple parameters.
Nifty Technical View
- Trendline supports come at 9800/9700.
- Previous swing highs at 9700. A small bottom at 9790.
- So till we do not close below those zones the momentum remains strong in the Higher Top Higher Bottom Formation.
- Last major bottom at 9450 is a trend reversal zone.
- Ideally assuming the trend is in focus one could have a stoploss a few points below 9700 and look for a pullback trade.
Bank Nifty Technical View
- Trendline Support and previous highs at 23500-23800.
- Last bottom at 23000 would be a trend reversal zone.
Back to testing the lows of last few months. Could act as a support zone.
A good hit today and now back to testing the lows of 6900 made in last few months. Could act as a support zone.
- The trend remains up in short term and the current dip could be a trading opportunity with strict stoplosses below the support zones.
- The short term trend change levels are still a few % points away.
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