NIFTY - Bulls in "China Shop"

22 nov. 2022

Nifty a direct move below 18280 punctures the bull's hope. Elsewhere calls for Chinese equity being cheaper relative increasing the decibels. In a relative world within the EM space this can be negative to start with. However, the recent experience anything to go by, one has to wait and watch how this unfolds. In the short term graph we have the rounding top the break of 18280 confirms. Not long ago we were wishing for ATH, suddenly we find ourselves just 140 points away near the open for this month. On the daily the expected inverse head and shoulder invalidation comes around close of 17980 zone. A failed pattern of this is equally powerful to bring to notice. We will watch that later. On the internals it has now weak from neutral with one day of moves. Many spaces the week looks like Three Black Crows, in some evening star pattern. This is not individual stocks it is the index. This writ large on many spaces, save a few like banking which is now defence sector in this whole market up move. For the day some sanity and consolidation one can expect, but the trend slightly moved to sell rallies. Supports 18130-18080-18015. Supply 18210-18230-18280. Shorts 18230 stops 18280 intra-day for move back to 18160. Else bigger stops 18330 for a move towards 18000 (hedge appropriately). The failure of up move structure minds the moves in the beginning of the year. Bear's sneak in but is not sufficient to trigger bigger and deeper moves yet.