After correcting almost ~2900/~900 points (~7%), the Sensex and the Nifty are trading below key support levels.
These levels will NOW act as resistances in any attempted rally from here on.
Whether we are anywhere closer to the bottom or not is something only time will tell, but every rise will be met with strong selling/resistances.
This is only a traders market - do not look for value or bottom fishing now. It's better to take short term trading calls on individual stocks or stay away from the markets, instead of trying to guess the market bottom and going long on the Nifty.
In terms of levels, if the current supports are broken, we could fall all the way to ~37700/11000.
On the other hand, a sustained close above ~39500/11550, could see the markets attempt to move closer to ~40000/11700.
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