Nifty closed last week at 4747, below the major support of 4880. 4747 also happens to the lowest closing levels since 5 Feb 2010 (4718). August 2011 has been the month of major losses for the Indian markets, with Nifty losing 780 points so far. This month has the highest losses since Oct 2008.
Since Nifty has broken through major supports, I see a possibility of a free fall in Nifty right up to 4100/4000 levels. There are no real supports between now and those levels. The fall could be pretty un-nerving for many, but this is very much possible.
In the coming week or 2, expect Nifty to show levels of 4695/4635/4550/4450.
On the upside, Nifty will face resistance at 4850/4880/4935.
Every up move in Nifty must be used to create short positions, of course with proper stop loss.
This remains a purely traders markets and retail investors must strictly keep away. Do not start buying any stocks yet. The time to buy is close, but we are not yet there.
It's a good article worth reading it. I heard like market may reach 14000 soon. Can we expect it??
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Rama