MarketsmithIndia Articles

Market Status Shifted to a Downtrend

March 18 2020

-Rally Attempt is a kind of ‘limbo’ stage. Here we are waiting for either a follow through day or a breach of the day one low.Here is why the Market shifted to a Downtrend.

-Today, Nifty breached its day one low of 8,555. The market status is shifted back to a Downtrend.

-Most stocks continued to take on the technical damage. With many moving deeper into their respective bases and breaking below logical levels of support. Markets are currently not conducive for holding stocks below their 50-and 200-DMA. So, It is better to protect capital by staying on the sidelines than to take risks.

What to expect now as the Market status shifted to Downtrend ?

-Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above its recent low for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation.


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