Indices
Wednesday, August 07, 2013
INDICES:
BEGINNING OF LAST PHASE OF TIMEWISE BEAR MARKET:
IT’S TIME TO CRASH IN MAIN INDEX (SENSEX/NIFTY) NOW.
As raised caution & given warning in advance in my last write up on 30.07.2013 about overall Trend of the market. It finally confirmed & broken this broad range of 5600-6200 levels on down side. It closed below 5600 levels at the end of trading session & also broken medium term channel support as per chart attached. Though it’s slightly legging on sensex front & still holding medium term support levels of 18600 levels but going with nifty & finally concluding medium term reversal on main index front (Sensex/Nifty) because most of the indices (i.e. Sector Indices, Midcap & small cap Indices etc) have broken this medium term support levels much in advance therefore sensex is also going to catch up it soon on downside alien with other Indices.
As mentioned few days back, Couple of evidences were still in favors of Bulls esp. for main Index. It was very well managed with the help of few stocks & sectors as mentioned many times in my write up as well. But now all the evidences are in favor of major down ward Trend beginning. Monthly & weekly both medium term indicators went in sell confirmed medium term weakness in trend. Market also closed below 20WSMA & 40WESM. It has also broken medium term support of 5600 levels & lastly wave count also looks impulsive from high of 6093.95 on nifty & 20351.06 on sensex as on 23.07.2013. So conclusively, all the evidences are in favor of bears for main index at current levels of market.
Market confirmed beginning of last phase of these time wise bear market. As motioned earlier, if its beginning, then worse is still ahead, in that case we are heading for final climax stage of this time wise bear market for the lower levels tgt1-5230, tgt2-5030,tgt3-4800 & tgt4-4500 levels in nifty & tgt1-17300, tgt2-16700, tgt3-15900 & tgt4-15100 levels in long to medium term.
Time wise stock specific correction & bottoming formation both will go on. Though I am not an expert on Time wise deadline to end of this phase but possibility for main index to bottoming out looks in the year 2014 & the after, we may see beginning of new BULL market.
The outlook remains negative till nifty & sensex trades below 6100 & 20351 respectively or any kind of evidences visible for TREND REVERSAL. One should sell or exit in any kind of pull back rally till TREND REVERSE.