Author Topic: CLSA Bearish on NIFTY  (Read 2114 times)

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sunil

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CLSA Bearish on NIFTY
« on: August 22, 2013, 12:49:41 PM »
The Nifty’s technical structure has deteriorated further following the break below 5,500 support. This breakdown ends over 10-months of ranging price action and provides us with a downside target of 4,916, the width of the old trading range project from the old support level at 5,500. Below this measured move next chart support is at the 4,537-4,700 area which includes the 2010 and 2011 lows.

On the currency side the Rupee continues to work its way higher following the breakout from the 2012-2013 triangle consolidation pattern. The recent break above the July 2013 highs opens the door for further weakness towards next chart resistance at the 67-68 area.