January – Favorite month of the Bears??
January seems to be the favorite month of the bears. Its been 4 yrs in a row we have seen a big correction in Markets in the month of Jan.
Famous crash of the 2008 began in the month of January where Nifty corrected from 6300 levels to 5300, In the year 2009 again we saw a fall from 3100 levels on Nifty to 2700 levels. In 2010 we saw a fall from 5270 levels to 4800 levels. Seems to be quite a lot of selling pressure coming in during the month of January from Domestic as well as Foreign institutions.
This year its been 7 days and we have again seen huge selling pressure coming in. Nifty has lost almost 4% in a week. Next strong support for Nifty is at 5750-5850 levels. If we manage to hold onto this level, we can see a good bounce from here. If we do break strong support of 5750 and close below this level, the trend in markets is likely to change from uptrend to downtrend in near term. Last 2 occasions we have seen a strong recovery from lows of 5750-5800 (Nov’10 & Dec’10). Only time can tell if history will repeat its self or we have something new in store for us this time around.
Tags: jan crash, nifty support, nifty view
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