Nifty fallen from 11750-10880 almost 850-880 Points down. Nice one side movement since 03-09-2018. Lot of messages I’m getting, whether nifty bottomed out ? To answer this Let’s go to chart and see what they have to offer us .
On Daily Chart, There is a Hidden Positive Divergence.. (hidden positive divergence develops when oscillator makes a lower low but price made a higher low). Options Data also suggesting that 10900 is a big support where PCR is 6.73 and 11000 also has a PCR of 2.4, which clearly acted as a support.(PCR is Put Call Ratio)
On Weekly Chart, Since 22-2-2016 Nifty is in a uptrend. Price has made Higher Highs and Higher Lows (Dow Theory).. First Low of this uptrend is made at 50% fib retracement. 2nd Low done at 38.2% retracement and now price took support at 50% retracement but week has not been ended. So, we have to see further developments over next 3 days..!!
Combined with Options Data, Daily and Weekly Chart.. Its clearly look like that 10900 is an important support level. One should start buying fundamental good stocks which are available at 20%-50% discount.
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