The NSEASI got a 701.61 points bashing yesterday in a rare and brutal rough em up Bearish Engulfing pattern. This is the 2nd time in 2 weeks the Index has similar pattern.
4 bullish days followed by a strong Bear trend.. TAKING IT All BACK.
NSE Daily chart
My take is still that the Support levels of 32,300 points from July 2017/ Sept 2018 is still very much intact for NOW.
2 most important words in technical analysis is “PRUDENCE” and “SIGNIFICANCE”. We are not seeing a significant breach of the most prudent support level yet! I think we should get a reaction rally very soon as this market has gone too far down too fast and the quality and behavior of the reaction rally is going to be the most important indication of the primary trend.
Market remains vulnerable as the 61.8% Fib levels of 31,115.31 points remains the last line of defence
NSE Monthly Chart