“As mentioned in my Sunday’s post, the November low of 23,263 for NIFTY was psychologically important. However, more importantly, the zone of 23,000 to 23,100 is a critical support because it represents a 45-degree angle from its September high of 26,277. Consequently, on Monday, the index, as expected, broke its November low.”
“However, NIFTY has thus far managed to maintain its critical support level at 23,000. As long as this support holds, a rebound towards the resistance zone of 23,550 to 23,700 remains a possibility.”
“While pockets within the Indian market exhibit signs of oversold conditions and may trigger short-term rebounds, the underlying bearish medium-term trend remains firmly in place.”
“The S&P 500 has also filled its election results day gap. Further lower lows are certainly possible, but a short-term pullback may occur.”
“On the time front, for both Indian markets and U.S. markets, some very strong cycle dates are lined up from January 17th to 24th. Expect some wild price swings in Indian and global markets starting around Friday.”
gann,insides 