Nifty & Banknifty at Crucial Juncture:
As mentioned in our previous posts, Risk Reward above 10,000 in Nifty & 25,000 in Banknifty was not favorable. Therefore, corrections has started taking place. The correction should be in the format of ABC correction. Nifty will go like 9644 – 9450 to 9725 – 9825 to 9220 – 9005. Right now, we are at a very crucial juncture. If in next two days nifty is able to close below 9840 we can see a sharp sell off till 9450. If we consolidate here & fall slows down then downside target will be restricted till 9644 for the first move. Global factors will play an important role in the coming days as we have seen a decent correction in European Markets, whereas US markets still trading near all time highs. We advise to become a seller in this market for next few months as long as we are not closing above all time highs. Crucial level in Banknifty would be 23800, if we close below this level in next two days, sharp correction till 22900 & 22250 could be seen. We are expecting a sharp correction in Dow Jones before any up move above 22222. Indian VIX has seen a sharp re-bound during the current week, if we are able to close this week above 13, there will be continued pressure on the markets. We have been outperforming global peers & will continue to do the same in the long run. Remember our long term target Sensex @90,000 in 2025.
