Trade –

Entry: 17850-17750
Stop: Above 17950
TGT 1 : 17430
TGT 2 : 17090

Risk reward: 7,500 : 35,500

Rationale –

Nifty finally had a parallel channel breakdown which got respected and retested today. With global indices also showing some bit of tiredness at highs alongside other fundamental issues majorly the China’s Evergrande Debt Crisis the possibility of a potential downside increases. The possible housing market crisis which can sweep the entire globe directly or indirectly has taken the center stage overthrowing the ongoing pandemic as its implications will be very dire resulting in a huge financial debacle as seen in the year 2008 caused by Lehman Brothers Bankruptcy although now there are many ways and tools to avert financial crisis of that magnitude leaving very less room for any such error. Now all depends on how the market will behave tomorrow as a gap up and a close higher will result in the invalidation of the pattern which has been the case almost every time a breakdown happens since the bull run started in mid 2020.

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