STEP 1 : MARKET ANALYSIS
Today Nifty was down 434 (-4.08%) and Sensex was down 769 (-3.98%), This is the biggest fall over the course of more than one year.
The A:D Ratio for the end of the day is 1 : 5.50 , this also the lowest for the whole year.The Indian VIX has increased 23.45 which is making new 52 week high. Today's falls is accompanied by huge volume.
STEP 2 : CHART ANALYSIS
The Raising trend line of nifty comes around 5500 and the horizontal trend line comes around 5475. So, the support zone is around 5475 - 5525. The close of the nifty is well between the area. The fall of the Nifty today sends us some warning signs that, there is low probability that nifty will hold it is support. The break of this range will break the neck line of head and shoulder pattern. The break and close of above range will confirm the down trend of nifty in weekly chart.
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