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F & O series ended with weakness
With negative A/D ratio of 1:2 and high
volatility, series ended with weakness. Despite short term oversold
condition, market failed to bounce back. Looking at 60 minutes chart
given here, it appears that the decline is either corrective or
impulsive and until and unless ending waves are over, turnaround will
be unlikely.
The nature of decline will be clear with the passage of time however,
if it is corrective, currently we could be in second part of it, after
'x' (see chart). In case of impulsive, probably wave 4 is in the
making to be followed by wave 5 going down.
Once, first set of decline with whatever pattern it unfolds with is
over, we will see a minor bottom of this decline only to cause a
relief rally within a larger decline. Such bottom is expected to take
place anytime in next one or two days. In other words, if the decline
is corrective bottom is very near, else .. it will be delayed a bit in
case of impulsive till wave 5 goes down.
Above 16197 and 16264, strength will be seen while below 15993
weakness will creep in. Traders are advise to go with the flow of the
market by following the given levels. Supports for the day are at
15993/15923/15860/15740 and resistances are placed at
16120/16197/16280/16342/16380.
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