NIFTY - It ain't scary till 4700 is breached
The below chart is of NIFTY. It's a weekly chart & hence removes lot of daily whipsaws. As you can see from the charts the Top-Top Trendline is giving NIFTY a strong resistance & currently 4700 levels is providing a good support. 4700 becomes a key support as earlier too has given good support for the NIFTY. Any break of this level on daily & especially weekly closing basis can give a steep fall of 300 odd points. As long as NIFTY is above it & somehow if bulls are able to cross 5100 on the upperside then things doesn't look scary till then.
Going by the way how things are panning out in Euro zone a break below 4700 is more expected from majority of market participants.
NIFTY 2 Years Weekly Line Chart
Market Wisdom: Market seldom does what majority of participants expect & does the opposite & keeps everyone guessing.
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