Nifty – Flag Breakdown

Nifty suffered a brutal fall from highs, turning the chart bearish as a breakdown is identified again. A retest of 200 DMA is pending from a long time which should happen before a new wave of uptrend starts. Given that global markets are also in a mixed state, it seems the overvaluation of scripts in anticipation of better results should have a correction. With the pandemic again re-emerging as 3rd wave in many countries, it becomes the fundamental reason for an overdue correction in riskier assets globally. Though it should be noted that corrections happening now are bull market corrections and they often are brisk and only last few days or even less.

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