Nifty's Financial Outlook Is Similar To That Of 'Dried Camel Dung': Brace For Correction: Expert

Bears attack NYSE, Dalal Street is next target

Alarm Bells have been incessantly clanging on Wall Street and Dalal Street over the past few days.

This is because the second wave of the deadly CoronaVirus has started and is taking a toll over the global economy.









The virus is also causing lockdowns of well-known Indian companies such as Bajaj Auto.



Emboldened, the Bears launched an aggressive and no-holds barred attack on Wall Street yesterday, causing the Dow Jones to sink a mammoth 730 points.



"Gravestone Doji Top" likely to be formed

The impact of the deadly attack by the Bears is that the NASDAQ is on the verge of forming a "Gravestone Doji Top".

This is revealed by Peter Brandt, a noted expert on technical analysis.



This eventuality, if it materializes, may result in a 'Game Over' for stock markets across the World.



Next stop for Nifty is 7377

Peter Brandt knows the Nifty like the back of his hand.

He has earlier warned that the Nifty has 'significant resistance' in the range of 10,000 to 10600 and has formed a "corrective rising wedge".



He has now claimed that the financial outlook of the Nifty is similar to that of "dried camel dung", implying that it has no tangible value and may plunge like a stone.



Expert traders are already short

It is notable that some expert traders had anticipated the crisis and loaded onto short positions by buying Puts and selling futures.

Wolf Richter, a famous investor/ trader on Wall Street, correctly pointed out that the rally is not sustainable.

He pointed out that the “greatest 50-day rally in history” of the S&P 500 index skyrocketing 47% from the lows has come at a time when the entire World is going the worst economic and corporate crisis imaginable.

"But stocks just kept surging even as millions of people lost their jobs each week. The more gut-wrenching the unemployment-insurance data, the more stocks soared," he said, rubbing his eyes in disbelief.

Obviously, the house of cards has to collapse sooner or later and so he has loaded onto massive shorts.



We will have to see whether he is rewarded for his perceptiveness or not.