A severe sell off was witnessed since the market opened for trade. It negated our bullish contention within a few minutes of trade and swiftly traded below 5400. Nifty concluded the day with a massive fall of 174 points at 5262. With the Nifty trading well below 5330 we are forced to abandon the view of the bullish Inverse Head and Shoulder pattern. In the immediate term should it breach the level of 5170 then we are looking at a very grim situation which can take it down to 5050, however in the event if Nifty hold today’s low of 5240 then there may be a bounce back but any such bounce back should be utilized as an opportunity to exit pending stuck up long positions. Going forward the levels of 5360 and beyond that 5420 may now serve as a resistance for Nifty.
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