The Sensex and Nifty have taken a deep plunge in trade on Thrusday and continue their downward slide. Experts take a look at the charts and reveal where the markets are headed technically.
Technical analyst, Rajat K Bose believes that the 3470 level is crucial for Nifty, below which it could test.
He says, "For the Nifty, 3470 is a very crucial level. If Nifty goes below it, then it will test lower levels that were tested a few days back. 3420 would be another crucial level and for Nifty futures. I would say 3380 and 3354 levels are the final support levels and before that 3452 would be another support level to watch out for."
He advises investors to sit out of the market due to its volatile nature. "It is better to sit out of the market and look for some kind of stability and let the strain settle, only then one should take a position otherwise one might get chopped off very heavily. Any stop loss may not work because this kind of volatility is unfound even in the last three years of trading data."
Sumit Rohra of Antique Stock Broking says that the market is likely to consolidate between 11,340 on the downside and 12,200 on the upside.
He says, "The market is likely to settle in a range. However, for this to happen a clarification needs to come from the Finance Ministry. Markets now would be floating between 11,340 and 12,200 and 11,344 should not be broken anyhow on a closing basis. If that happens the market trend would turn negative and will set alarm bells ringing all around."
Technical analyst, Deepak Mohoni says that global selling has hit the markets badly and he would wait for the decline to stop.
He says, "It is difficult to say where the Nifty will stop because the signs are ominous because there is this big global decline going on. Though we had good bounce yesterday, it is clear that whenever the global selling starts it hits us badly."
He says he would wait for two things now; one- for the decline to stop and second for the volatility to reduce. "With these kind of moves even if one has a position in the right direction, it is quite likely that a small bounce back against you can give you stop-losses," says Mohoni.
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