The fall of Apple, New Turn not Newton!
Gravity or Cavity
Nifty – The fall of Apple – New Turn not Newton!
Three days of climb, nothing unusual if one understands the dynamics of markets. Three Crows followed. Three candle up move unfolded. That's on the face. Last six days the first candle produced the largest bear candle, the following two candles each of two days produced smaller bodies and larger wicks. Drilled down further, last three days moves, day one larger candle followed by shrinking bodies. A sign of reluctance on either ways. The textbook three-day period is over (science yet to establish why number three is important). The last three days of December moves in the last ten years are less than 1% so that brings the kind of moves one can expect today and tomorrow. Also note today is the expiry and tomorrow no mood to punt, it is party time. Else were SPX hits fresh news, as Apple stock hits new 52 week low. No sign of new turn yet. It looks set for at least low three digits. A clear sign of wealth destruction. In case if we close below 17930 that clearly marks near follow three pattern which is continuation of the recent down move. So, nothing is on a good start to the bulls. Once again held below the 18180 handle very well and that area of 18180-18230 remains the near-term hedge area or stop for the shorts. A gap open day ahead, so intra-day stops are one hour high plus 2 points, no inclination to long in this move. Supports 18080-18030-17960-17930-17880. Supply 18130-18188-18230.
Niftybank:- The PCR test (put call ratio)
They came, they climbed, they held but they will be tested. That is the test bulls look to tested. Elsewhere, despite China opening, others closing the door to Chinese inward flights. Stories or cases of covid positive from China Travellers once again unnerving the market. It is very unusual, equity getting sold in the month of December and that too in the last days of the day. Low liquidity unnerving. It is not those days that liquidity not to return as any value investor of these times can always place an order. When that is not happening, the waiting game extends or postpones to next year. The worry is no longer inflation but the impending recession. When that probability unfolds, the worry shifts to the bank's as they are potential for future NPAs It is too early for our banks to talk as domestic growth is still robust. But then the men's and boy's getting split. The larger canvass to envelop and thus the space prone to profit taking from the strong base it held which now is acting as resistance. What is more interesting or important to watch is the bigger trendline around the 41800 and if that goes, then the deeper move. Else a move past 43300 needed for bulls to breadth. For now, the test is crucial to survive. Stay short below 43200 for move to low 42000 (not a day's move, but who knows?)
@sribhashyam65 – Trading View – sreebhashyam