Nifty may fall further up to the area of 4675: Imran Vora

Imran Vora, Senior Technical Analyst, Gupta equities Private Limited

A clear down day for the markets and the losses just do not seem to stop. The gash goes on increasing at this point in time. What exactly does one watch out for? What are the crucial levels beyond which there can be even further more pain?

Regarding the Nifty which is as of now trading around 4806, it seems that we are directly heading towards the major support area of 4675 where we can have a temporary pause of this main trend which is on the downward side. We are expecting any bounce back in Nifty from the level of 4675. So this 4800 which is also a minor support area but we do not think so that this support area will survive for much more time and intermediate bounce back or a slight bounce back up to the area of 4860 in the next trading session can come but we do not think that this minor bounce back will hold for a while and once again we will head towards 4675.

From the level of 4675, we are expecting a major corrective counter trend on the higher side where we are expecting that the rally of 4900 should occur. Please keep in mind that 4675 is an area from where according the Dow theory a major sell signal can be created in case if the market breaches that are but before breaching any major support area on the downward side, we are expecting a counter trend. So as of now we are expecting that once again the Nifty should fall further up to the area of 4675 before any conclusive bounce back on the higher side.