Market View 20230814

So, for last 2 weeks, I've had this "gut" feeling that the BankNifty would correct, and it has, by about 5% from the peak. If you look closely, you can extract a head and shoulder pattern, but a weak one, which means we could see a lower of 43,300.

I remain bearish, only because there is a gap fill at 40,000 which is another 4000 points below. But I can't say for sure if it will be a slow decline, or a sharp fall.

A slow decline is painful, as many will throw in the towel when the markets touch 40,000 level, and that's when you want to be buying. But a sharp fall like in a broken lift, will cause damage, but it will recover faster, as it indicates that free markets are at work, washing out the weak hands.

10:56 AM

It looks like we're bottoming out at 44000 level, the longer this goes, the higher the move upward we could see.

2:04 PM

As expected we have moved higher forming a good base. This could be the support going forward. But let's check other data points.

3:20 PM

Looks like an attempt was made to breach the downward trendline, and that failed, indicating a possible downtrend! If before this expiry, we don't see it above the trendline, the stronger the indication is going to be.