It looks like, since the market has been keeping its head below 2,700, it may even struggle on adjusted basis to keep its head well above 2,700. So we may just about be lucky to close optically above 2,700 but traders would know that this closing on the Nifty on the last downtick is below 2,700.
The other point is this obsession with some levels that we figure out. Sometimes we say it is 2,800, sometimes we say it is 2,700, sometimes we say it is 2,600. In reality, these levels have actually no meaning. So if the global markets were to drift down over the next few days then all these levels would get violated in any case. It is not as if India will hold out 2,700 or 2,630 or anything like that if the Dow is going back below 7,500.
So the bigger picture is to figure out what is going on in the environment and see if global equities are breaking down once again because this obsession with levels never ends. You start at one level and you keep saying now the next all important support level is 100 points lower, when that gets violated two days down the line then you talk about another level 100 points lower. But this can be a never ending game.
Traders will use levels as crutches to trade but you cannot get misled using those kind of things and take your eye off the bigger picture. The bigger picture is do we have a global trend in place, increasingly over the last ten days it is looking like it is a downtrend. Something has to change in the next day or two to snap that trend around because otherwise we are looking at November lows for the US markets and in that case it cannot be looking very rosy here as well.
On that note, the market ends and the last recorded tick on the Nifty is 2,692, so officially below 2,700 mark whatever that means and the Sensex closes 365 points lower at 8,736.
