As expected, Nifty low on Friday, the 7th August,2009 was 4464, the centre point of Chatusruti Rishabham and closing was at 4481(a loss of 105 points). Even after such a fall Surya level is still at 4448 which indicates a bounce back, may be to the tune of Friday fall. If that happens Nifty will be above Agni level at 4570 which is a buy again. But, the chances are that Nifty may not go beyond 4570 and prepare for next downward movement.
The period from 10th to 20th August warrants special attention. Many figures in the analysis sheet of Kamolikav, a copy of which is being maintained by Nandi, is showing decreasing / negative figures during this period. The exact implications of it is not yet clear. Nifty PE ratio has gone above 20 and except for October-December 2007, normally corrections take place when Nifty PE is around 21-22. Perhaps the sell off seen on the afternoon of 7th August(full moon day)may have triggered by an advanced computer trading software used by an FII on touching a predefined PE ratio. As the week ahead may spring in surprises, it is advisable to trade with caution and with tight stop loss.
2 comments:
dear nandi,
the "dead cat bounce" over 4380 has shwn up-moves today................though shortlived.....wht do u feel bout it and the downmove targets.personal analysis r giving me a very strng down move.
regards
ritesh anan
Dear Ritesh,
Nandi's minimum target is lower boarder of Shadjam ie. 3790. It can even go down further if some catestrophe takes place and culminates in panic selling. It may be either a Tsunami, Terror attack or pandemic.
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