Nifty breaks below 23500, oversold levels may lead to bounce.
Nifty makes low of 23477, falling 158 points from previous close.
As of 09:45 IST, 9 Sept
Nifty turns oversold on daily & hourly scale as it slips below 23500, falling over 550 points in 4 sessions from 24029. Our intermediate target of 23500 is achieved and we may see some corrective bounce in the market to 23700-23800 levels, however overall structural setup remains bearish and sell on highs.
Today taking a contra buy trade in index may work, while stocks to see stock specific activity with fresh breakdowns plus reversal on hourly chart.
In intraday 23650-23700 may act as resistance level, support can be seen at 23450-23500.
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By closing below 24000 Nifty has entered into the larger picture with downside potential to 23000-22500. Read below…
01 The Larger Picture
Nifty completed 61.8% retracement the entire fall at 24752 during consolidation, and has now breached below the trend line support of 24000, resuming down trend to 23000-22500 level.
23600-23500 zone may act as 1st deterrence level post breakdown below 24000, on oversold readings and short-covering leading to re-testing of breakdown area near 24000 and BRICS positive optimism from BRICS summit.
BoJ Interest rate policy is the key event to watch out for which may act as trigger for rest of the Macro issues surfacing in the market dynamics, and a global sell-off scenario.
Tips disappears, Tradzo stands with you.
02 Key Macro Risks Ahead
- 1.Probability of US sanction based Tariffs on India & China near BRICS summit.
- 2.Crude & Refining capacity around the world translating inflation in downstream crude products, Ureas shortage leading food security concerns
- 3.Escalation of US-Iran war to entire West Asia
- 4.Escalation from Pakistan front as US proxy to sabotage BRICS agenda of new global monetary system bypassing the US Dollar.
- 5.US Debt & housing collapse due to unwinding of Yen carry trade.
- 6.AI Bubble burst - AI maybe becoming popular and very successful tools in the right hands but for majority its just new dopamine, with sky high valuations and no signs of profits.
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Tradzo Research
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