Following image represents 60 min chart of Nifty. A huge divergence is formed, Nifty spent full week to create this divergence. There are very high chances this might end bearishness for some time.
Looking at the fact it took full week to create this divergence I am expecting strength in upside in case divergence succeeds to end bearishness.
Second image is weekly chart of Nifty. Here too w can see a kick pattern is formed in October of 2015, now all we have to wait till Nifty closes above 7600, if that happens then we can say that Market is most probably on its path to recovery and avenues for fresh investments will open.
On Investors seminar by Sharekhan we learned that market is currently trading on PE of 13-15, and whenever market reaches PE of these levels market starts recovering.
If I also consider plus points of Sharekhan Market Overlook I can say that Market is Technically and Fundamentally strong to regain upside. All it has to do is just confirm by closing above 7600.
I am not SEBI authorized Stock and Research Analyst, the blog I wrote here shouldn't be considered as research by analyst but as personal opinion.
As per SEBI (Research Analyst) regulations 2014 Article 21 : “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
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