“The market is sending us clear signals, and it’s crucial to understand them. While some may see short-term volatility, the underlying trend remains firmly bearish. Let’s delve deeper into the factors driving this market movement.”
https://ganninsides.com/2025/01/04/decoding-the-market-unraveling-the-current-trends/
“Markets behaved precisely as I predicted in my January 4th post. As discussed, both the Nifty and the S&P 500 fell below their given support levels during the week and are now poised for further declines.”
So “There’s nothing further to add to our previous discussion. My stance on Indian markets has been unequivocally bearish since early October, and I’ve held a bearish outlook on US indices since early December.”
The bearish trend persists, but certain market segments within India are showing signs of being oversold. This could lead to heightened volatility, but the overall market direction is likely to remain downward. I anticipate significantly lower levels for the Nifty and have shared specific price targets and their associated timelines with subscribers.”
For now, let’s discuss the near-term setup for NIFTY and the S&P 500.
NIFTY
“The November low of 23,263 is psychologically important for NIFTY, but more importantly, the zone of 23,000 to 23,100 is a more critical support level. This is because it represents a 45-degree angle support line drawn from its September high of 26,277. Therefore, a break below this zone could open up significant downside levels in the short and medium term.”
If 23000 is broken, 22500 may become a potential target in the short term.”
S&P 500
“On the S&P 500, as I discussed last week, 5840 was a critical support level. As anticipated, this support finally broke on Friday. However, the election results day gap has not yet been filled. This gap would be filled at 5781. It should only be a matter of time before the index fills this gap. Once this happens, it could open up a decline towards 5620 within the next few days. From here, global markets are about to enter a phase of extreme volatility, so be prepared for a roller coaster ride.”
“Last week, I also discussed certain tech stocks, such as Nvidia and Microsoft, which exhibited setups for a sharp decline. As predicted, both stocks experienced significant selloffs. Notably, the reversal in Nvidia has been particularly severe, potentially signaling the beginning of a broader downturn within the tech sector. A decisive break below the critical 126-130 price zone in Nvidia would strongly suggest a significant shift in sentiment and could have severe implications for investors in the technology space.”
“Things are looking a bit dicey for both NIFTY and the S&P 500 right now. With those support levels broken, it could get bumpy ahead. Best to be prepared for some volatility.”
gann,insides 