Nifty Detailed View :
Here we see that there are cluster of supports between 4450-4550 levels ( 4 reasons given ) from where Nifty should bounce back atleast till 38.2% retracement level of the entire fall from 5400 as it has done in previous major falls in this falling parallel channel that could be closer to 4800-4850 levels as a bounce back target.
1 ) Lows of 4550 in nov 2009 are critical
2 ) 50% retracement of entire rally from 2550 to 6350 is placed around 4450.
3) RSI - highly oversold, at same levels where previous important lows in Nifty were formed. We are near to 28. Generally we bottom at 24-26 levels.
4) Lower end of falling channel is placed around 4500 so this should act as a major support for the Index
Now similar chart for Sensex is below. 14800-15200 band should support.
HAPPY INVESTING ,
Nooresh Merani
Nooresh Merani - An IT engineer by qualification and Advisor/Trainer by profession.