Market Status is bearish even in this week. Unless, 5800 is convincingly broken, the trend may remain bearish. In the event of 5640 breaking, there is a potential that NIFTY may test 5565.
If we go a bit deeper, and look at the trend channel, we can see that the trend channel is broken down. Even though, the weekly close was mildly positive, it still remains below the trend channel. You may see it on the zoomed view.
Let us now look at the S&P 500 chart. As expected on Thursday, it went for the breakdown and precisely touched the fib target. Then on Friday, it retraced to 38% level and by the close, it closed below the 68% level, indicating a 20 Points fall in the beginning of next week; that is; close to 2% move downwards in S&P.
Now, if we translate this 2% downward move in NIFTY, from the current level of 5696, we get 5582. This is very close to the level mentioned above.
Disclaimer: Note that, this analysis may or may not become reality. Hence, neither the analyst nor the publisher is responsible for the outcome.
