It has taken 12 days for the market to completely retrace the 4 day fall of 1143 points (20217-19074).
Also we are in the zone of 61.8% retracement of the entire Nov fall. We might experience some pressure in the market around this level.
However, if it is able take out 20300 convincingly (i.e. with a 200-300 point thrust or by closing above it for 3 days) we might easily go & test the recent highs. Also it opens up chances for life-time highs in the coming weeks.
On the weekly charts we had observed an engulfing bear pattern in Nov, the week after "Muhurat Trading".
This pattern on weekly chart was observed in Jan 2008, May 2008 & Aug 2008, and we know the results thereafter.
On monthly charts we had observed a doji (Oct), followed by engulfing bear (Nov). Although it seems this month has negated the negative effect of the earlier months (** the month is not over yet).
Overall this is a trading market only. Trade for smaller margins & remain liquid.
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