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Friday, November 16, 2012

Nifty falls off the (US Fiscal) cliff today!

Nifty Index had a particularly bad day today, with US Fiscal worries weighing high on markets globally. The Nifty Index fell from a Intra-day high of 5662 to Day Close of 5566, which was Day's lowest point as well. Thus the intra-crash for Nifty was almost 2%, a significant crash. Similar was the case for other indices such as BankNifty and Midcap index. Midcap Index fell about 56 points, which is fall of almost 2.5% in Midcap index intraday. Day close for Nifty was about 1.2% lower than previous day close. Please see the EoD chart for Nifty-1M below:

Looking at Nifty-1M 's Uptrend line forming since 26th July, 2012, we almost have breached that up-trend line today, hence barring a strong rebound and support from this line on Monday, we are in for further fall in Nifty for next few days. Please see the hourly chart for Nifty-1M below:

Next support for Nifty-1M is close at 5548, a 20 points down from here and next support line is at 5457, which is a good 100 points down from here. So another 120 point fall cannot be ruled out.

Please see the Midcap Index hourly chart below:

Midcap Index is doing equally bad, with next support at 2150, 40 points down from here and at 2100, 90 points down from here.

A lot now depends on how global situation is on Monday and whether any significant improvement takes place in US fiscal situation by then, or are markets allowed to free-fall in this manner till December 31, 2012. 

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