So far market was in parabolic move until the current crash due to pandemic.
Market enter the bearish territory after small showing some upward moves, same was reflected in 2007-2008 with almost same retracement.
The red line the support line for the parabolic curve .
As the market is bearish hence the long term support will be at 21k and will have consolidation between 21k and 18k mostly.
Why i think this will happen.There are several reason behind the market bearishness few are listed below.
1) Current stimulus package of 20 lac cr. didn't surprise as definitely it help market to move up for sometime but there is no fact behind such move as per economic theories where demand and supply is disturb.
2) 2nd quarter earning will be out in July. looking at current state of lock down surely earning will not surprise market very much hence a sudden fall is expected by July 1st week.
3) Due to continuous extension of lock down it become sure the virus not going to be in control in India very such with couple of weeks which will disturb further consumption affecting demand and supply.
I will post my view once we move to the support level for further market direction.
Market can surprise anytime hence no analysis is concrete hence always alter and move with the trend.
Market enter the bearish territory after small showing some upward moves, same was reflected in 2007-2008 with almost same retracement.
The red line the support line for the parabolic curve .
As the market is bearish hence the long term support will be at 21k and will have consolidation between 21k and 18k mostly.
Why i think this will happen.There are several reason behind the market bearishness few are listed below.
1) Current stimulus package of 20 lac cr. didn't surprise as definitely it help market to move up for sometime but there is no fact behind such move as per economic theories where demand and supply is disturb.
2) 2nd quarter earning will be out in July. looking at current state of lock down surely earning will not surprise market very much hence a sudden fall is expected by July 1st week.
3) Due to continuous extension of lock down it become sure the virus not going to be in control in India very such with couple of weeks which will disturb further consumption affecting demand and supply.
I will post my view once we move to the support level for further market direction.
Market can surprise anytime hence no analysis is concrete hence always alter and move with the trend.