Nifty Views for November 20 - Manoj Bhagra

Someone had aptly said that there are no resistances in a bull market and there are no supports in a bear market. This seems to be playing unusually well nowadays, we are banging on to the resistances only to be pushed back and when we come to supports they just plop.

Let’s take a brief look at today’s action and see what we can see for tomorrow. The chart on the left is the hourly chart, we can see a series of LH’s and LL’s in the making…yup…downtrend…no marks for guessing that. Every rise on the hourly chart is barely making it to the 20 periods MA and reverting. All intraday pullbacks are met with strong line of supply and eager bears ready to unleash new shorts. Hourly chart doesn’t show any supports below, other than the trend line below, but I am beginning to doubt weather it would hold.

The daily chart on the right shows we have just managed to close above 61.8% retracement, the last point of hope for all the leftover bulls! Like I have been often saying that for me the game is over if we break and trade below 2500 (its here where we would start eating into our tail!). And if we talk about the up moves from here…man….we need to really do better than the intraday upswings we’ve been doing so far. It is a painful exercise now starting with 2695/2700 to 2770 to 2860 to 2950 to 3060 and …..Zzzz… the story goes on!

"The minute you settle for less than you deserve, you get even less than you settled for." - Maureen Dowd