The Monthly Nifty Charts show the downward sloping channel..the touch down was app.3290-3300 , markets moved fast furiuos yesterday towards it , but stopped short at 3329.45..,turned and covered ground fast despite continuos selling & kept recovering till the close.The speed lines show the 3rd final supports around 3100 area..(i have 3140-3150 as a value of nifty for final support )below which could be a free fall..last we tested this support line was MAY'04...If this bottom holds , we can expect a bounce to 4100 area as per speed lines and any turn of trend can take us to top of the channel which today is .. 4300 area ..The Monthly Stochastics & RSI are fast nearing the oversold territory( from January'08 tops) but still pointing downwards due to relentless selling of last 1 week. As and when they turn , the market can look upwards..for a while , will the relief rally come , surely why not as everything is grossly overdone..MILLION DOLLAR QUESTION IS WHEN..??????The best thing we can do here is start to look for signs like, higher bottoms /higher tops...& see that the bottoms made are not breached .Do keep in mind that the last one weeks fall put in a huge STRUCTURAL DAMAGE TO ALL STOCK/FINANCIAL MARKETS OF THE WORLD. And recovery will be a bit slow and over time..Hope this helps all friends visiting here.. cheers..
PS: Monthly charts are used for finding future footprints from the past for longterm.
