NIFTY has closed below 200DMA indicating bearish trend.
Recalling 2008 fall:
NIFTY has fallen from a peak of 6300 to 2300, almost 60% fallen from its peak. however during that time it made lower lows to make it to that low levels.
After consolidating at lower levels for nearly 6 months between 2400 and 3000 levels. it rallied almost 100% within 3 months from 2500 to 4600.
From here on it took support at 4600 and made higher highs.
Current Scenario : on Weekly chart
It broke recent double bottom as well at 10034 and has next support at 8900 levels way below 200 DMA.
if it broke this level also then 8000,7000 followed by 6300.
Dow has indicated a further 1000 point fall, So there are chances that it may fall upto 9000 levels.
This fall is not in the form of lower lows, it is continuously falling with gap downs, there it can be seen as pole in the pole-flag pattern.
while bottom out we can witness a consolidation, just to wait for that trend.
I hope this fall will impact mostly on Blue chip stocks. since mid caps are already beaten down.
Recalling 2008 fall:
NIFTY has fallen from a peak of 6300 to 2300, almost 60% fallen from its peak. however during that time it made lower lows to make it to that low levels.
After consolidating at lower levels for nearly 6 months between 2400 and 3000 levels. it rallied almost 100% within 3 months from 2500 to 4600.
From here on it took support at 4600 and made higher highs.
Current Scenario : on Weekly chart
It broke recent double bottom as well at 10034 and has next support at 8900 levels way below 200 DMA.
if it broke this level also then 8000,7000 followed by 6300.
Dow has indicated a further 1000 point fall, So there are chances that it may fall upto 9000 levels.
This fall is not in the form of lower lows, it is continuously falling with gap downs, there it can be seen as pole in the pole-flag pattern.
while bottom out we can witness a consolidation, just to wait for that trend.
I hope this fall will impact mostly on Blue chip stocks. since mid caps are already beaten down.