Title indexes are now severely oversold on both daily and weekly schedules. Despite this technical setup, analyzing the market alone will not help.
IST at 9.20pm, the U.S. stock market is in deep losses, Dow Jones The trading volume was 2,159.35 points, or 9.17%, at 21,393.87. If overnight weakness persists, it will rule out any major pullbacks in the Indian market.
Friday's meeting may start a new day. The opening will be directly affected by US stocks and their impact on Asian markets. If there is a technical pullback, the 9,750 and 9,960 levels will become resistance levels, while support may be located at 9,410 and 9,310 levels.
of Relative intensity index The (RSI) on the daily chart is 13.05, and deep trading is performed in the oversold area. The indicator hit a new low of 14 cycles without any difference and remained neutral to prices.
The daily MACD is bearish and remains below the signal line. A falling window is formed on the daily chart. This formation is due to the negative side. The large size of the candle heralded huge selling pressure on Thursday.
The Indian Volatility Index India VIX surged 30.45% to 41.16. The volatility index is at its highest level since 2010. Although high volatility is usually related to the bottom of the market, in the current situation it is best to suggest a temporary bottom on the chart.
Considering the oversold phenomenon in the market, we strongly advise traders not to create any new short positions. At the same time, purchase quantities should be very modest.
It is not wise to make aggressive purchases simply because the market is oversold. You should only try to buy at a low price when there are signs of stability, even if it means making a higher level of purchase.
(MSTA's CMT's Milan Vaishnav is a consulting technical analyst and the founder of Vadodara's gem equity research and consulting service. He can be reached at firstname.lastname@example.org.)