Nifty Technical and Fundamental Snapshot

As we are well into 2015 I thought it would make sense to look at the technical and fundamental snapshot of the Indian stock market #Nifty index. First the technicals. For this I turn to San at Nifty charts and latest patterns. As can be seen from the chart below the Nifty is on the verge of a head and shoulders break down with the important 0.618 fibonacci retracement level close to 8650 on the Nifty serving as a major short term top. This along with the #bearish divergences in technical indicators make the market over extended in the short term and ripe for a fall.

Next the fundamentals, for this I turn to Sanjay Jaiswal at Market Pulse for the daily updated trailing #P/E ratio on the Nifty. As you can see below despite the recent fall it stood above 22.0. The market is obviously overvalued.

Support: 7750
Resistance: 7950

Taken together the market appears over extended and ready for a fall both on technical and #fundamental grounds.


About rajveeronmarkets

I am an avid market watcher having followed capital markets in the US and India since 1993. My research interests includes areas of Capital Markets, Banking, Investment Analysis and Portfolio Management and have over 20 years of experience in the above areas covering the US and Indian Markets.
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