05 May 2011

Nifty : Correction Confusion ?

The Indian Market was shaken and stirred on Tuesday. RBI raised interest rates more than popular expectation and interest rate sensitives nosedived, pulling Nifty below 5700 and then 5600. On Wednesday selling continued and Nifty test 5500. The selling has been furious, but something which I wanted to point out earlier but got late was the fact that the market crossed these zones while coming up with a similar speed. Angle of reflection is always equal to angle of incidence.

The chart below will hopefully explain where I feel Nifty can go in near term.


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