8:38 AM
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Nifty Support at 4780-4725-4670
Nifty Yesterday opened at 5077.95 and later witnessed selling pressure all throughout the day. It broke the major support level of 4960 and closed below the same at 4944 down 112 pts or 2.2%. Nifty also made a new weekly low on Thursday and a new 52-week low. This indicates that the market is witnessing selling pressure and is in a major downtrend. Supports in the market from the current levels are placed at 4780-4725-4670 levels.
The downfall in Nifty coupled with a rise in the volumes and across-the board selling pressure from the stocks also indicates that the bulls are weak and the bears are strong. The strong supports at 4725-4670 levels.
I believe this leg of correction will be sharper than the consolidation phase seen in the past 10 months. More than 30% of the stocks in the Nifty are near 52-week lows. The best way to trade in such a market is to sell on every rise with right stock-picking and risk-analysis. Avoiding over leveraged positions and trading with strict stop-loss should be the strategy in current market situation.