Certainly not higher levels but
given that we had two bad weeks from 5,300 down to 4,900, we could have a few sideways
volatile days where we will have sharp intraday rallies only to get sold into
and once the day is over we will not have gained or lost much.
However, I cannot see significant buying comeback or large pullback rallies happening because there is a very strong downtrend. The great property of a strong trend is that on every little rally on every intraday bounce, it gets sold into.
Similarly, for a strong uptrend, we would have seen that. In a strong uptrend, any gap down or any intraday bounce gets sold into. So, a similar action is now going to happen on the downside and there are stocks which still need to be sold like all the expensive pharmas’ or consumption stories.
There is a pocket which has not really faced the brunt. So, it is not like everything is sold off and everything is hanging at support. Others would go sideways, while some of these stocks would start falling now.
However, I cannot see significant buying comeback or large pullback rallies happening because there is a very strong downtrend. The great property of a strong trend is that on every little rally on every intraday bounce, it gets sold into.
Similarly, for a strong uptrend, we would have seen that. In a strong uptrend, any gap down or any intraday bounce gets sold into. So, a similar action is now going to happen on the downside and there are stocks which still need to be sold like all the expensive pharmas’ or consumption stories.
There is a pocket which has not really faced the brunt. So, it is not like everything is sold off and everything is hanging at support. Others would go sideways, while some of these stocks would start falling now.
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