Nifty Spot Technical
Failing to cross 8530-50 was first sign of weakness, breach of 8430-8400 was loud alarm bell for the Bulls and breach of crucial support 8330-20 is very bad, potential target now 8000. Friday's Gap down has spoiled the overall set up, which is a break away gap and could provide hard resistance in coming days. Only positive factor in the chart is, 200 EMA is still alive (8291) and Friday Nifty made low 8225 and took support, which was very close to 8210 which is 61.8% Fibo level (8654 - 7940). Now 8225-10 will provide good support today, if held we can see some recovery in the market. Otherwise 8000 may come and 8124 could provide some intermediate support.
In Weekly Chart, there is very long term trend line since August 2013 (Last significant fall in recent times) and last week candle took support exactly at this trend line, therefore 8225-10 is very significant level to watch,
China weakness and its spillover effect on US Markets, Emerging market currency slippage, concern about Global Growth coupled with weak monsoon and failure to pass big bills in Parliament have made FIIs sell in last few days. However, at the same time, possibility of delay in US rate hike and AP Shah Committee Report on waiver of MAT on FIIs with retrospective effect are also few positive news. Moreover, China Government also is planning to push massive liquidity to boost lending which could prompt Asian Market recover today. Various Government activities and announcements are also market friendly. So, there is bright chance that fall shall be arrested anytime soon and market will recover in short to medium term. Buy quality stocks on Dips strategy may continue.