February 1, 2020

Market outlook

Daily charts:
- trend is down on daily charts (wef today)
- today nifty closed 2.5% in negative at 11662
- AD was 2:7

Expecting lot of comments why I did not warn earlier
- note trend was down on hourly charts from 12224 (https://www.vfmdirect.in/2020/01/market-outlook_20.html)
- above post also mentioned of huge bearish engulfing bar
- weekly charts show rising wedge/ nifty at stiff resistance
- yesterday made a 3rd part post about possible 10% correction
- PE ratio above 28 has been a problem for a long time
- indicated close below 12000 will be a problem/ trend reversal

Looking forward
- retest of 11800 and maybe 12000 possible
- but this damage to structure, volatility will be there for some time
- this is because new people will like to short and people who could not exit earlier will attempt to exit on any bounce
- next support 11200

Intraday chart for reference only

On a different note: this is what FM said on the market crash

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