August 31, 2020

NIFTY EOD charts

- trend is up on daily charts
- today nifty was up 1% initially but finally closed 2.3% in negative at 11387
- intraday fall was 400 points
- resulting bar is now a HUGE bearish engulfing bar

- so we have a very clear top in place around 11800
- and 12000 remains a strong resistance

- AD was 1:5
- VIX shot up 27% to 23.3

- markets were long overdue for a correction 
- and high PE ratio is just not suitable for new long term investors
- however I was surprised by the intensity of the fall

- some people say it was due to SEBI margin rules
- but this was in public domain for a long time and is not anything new

- swing low support around 11000
- till this breaks nothing to worry
- but PE ratio is this level will still be uncomfortably high

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