The state of the markets: Contemplating similarity and difference between 2008 and 2011 market corrections and the possible road ahead.
After seeing sell off in the initlal 4 days of the current October derivatives expiry to low of 4741; nifty index has been steadily showing upward trend resulting in a high of 5402.75 on the second day (28th oct and start of nov expiry) of diwali muhurt trading day.
We had seen a sell off to 4720 level from above 5700 in at the end of the august derivatives expiry beginning from the end of july expiry (july was tight ranged and low volatile trading band month for the indice) following consistent correction in the august expiry as said.
If we go back even further and want to take a sneak of diwali to diwali map than we can see market making clear lower top lower bottom pattern (one of the few sure-shot highly reliable and predictive technical patterns) since last diwali which was on 5th of november 2010.
We can see in the chart no-1 that nifty made high of 6338.50 on 5 november that is the 2010 diwali day!
Head and shoulders pattern-
After seeing sell off in the initlal 4 days of the current October derivatives expiry to low of 4741; nifty index has been steadily showing upward trend resulting in a high of 5402.75 on the second day (28th oct and start of nov expiry) of diwali muhurt trading day.
We had seen a sell off to 4720 level from above 5700 in at the end of the august derivatives expiry beginning from the end of july expiry (july was tight ranged and low volatile trading band month for the indice) following consistent correction in the august expiry as said.
If we go back even further and want to take a sneak of diwali to diwali map than we can see market making clear lower top lower bottom pattern (one of the few sure-shot highly reliable and predictive technical patterns) since last diwali which was on 5th of november 2010.
We can see in the chart no-1 that nifty made high of 6338.50 on 5 november that is the 2010 diwali day!
Head and shoulders pattern-
