Today morning before the markets opened I got to know that the RBI governor Mr Raghuram has cut the interest rates again by 25 basis points , last time whn the interest rates were cut Nifty rallied and it was the start of the new uptrend. This time however Nifty and other markets opened positive, Nifty opened at an all time high but could not sustain the price range and declined throughout the day closing at almost the low point. Can this be the end of the uptrend ? Well all I can say is that we are pretty close to the market top and a correction is due to happen. Nifty PE also is in the expensive range and in 2000 & 2008 when Nifty crashed the historical PE ratio was 28. Currently we are trading at levels of 24.
The close took support from the trendline and tomorrow we might see the start of the 5th wave.
Buy Above – 8976(pivot)
Sell Below – 8850
Resistance – 9018, 9117
Support – 8910,8870,8850