After Friday’s pullback, broader market to resume downtrend in 1-2 days: Gaurav Bissa

economictimes.indiatimes.com:

Gaurav Bissa, Vice-President, Incred Equities, says “there was a major breakdown in Nifty around 19,000-19250. We had three attempts in this particular zone and all the three attempts we had a very strong pullback. We have finally given a breakdown. It might be a case of breakdown retest. Nifty might go towards 19,200-250 and again start falling down. So I am expecting one more leg of fall and that can also be a swift fall going forward.”


After six days of underperformance versus the benchmark, the broader market outperformed on Friday. Where according to the charts, is the broader market going?
The broader markets have entered into a downtrend. If you look at the daily charts and at hourly or two-hourly charts as well, there is a clear formation of lower tops, lower bottoms which is a characteristic of downtrend. Also, there has been a fresh swing low breakout that we have seen. This is a technical pullback as for six days we have seen significant downside. The momentum indicators were in a deeply oversold zone. So it is more of a technical bounce back and we may see one or two days more of positive trading but then the downtrend can resume and we may see lower levels coming in the broader markets again.

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Are you suggesting that the reversal that we saw in trade on Friday is not expected to sustain going forward? Given the fact that Nifty RSI was below 30, don't you think at least the largecaps are in the buy zone currently?
That was the reason we had recommended Nifty