Bears emerge as Nifty fails to breach 10400 on the third day as bears further grip the crucial level. A third attempt from bulls has been neglected as it wasn’t able to breach it convincingly. A bearish Harami pattern is seen on the daily chart which indicates a red flag for bulls in short-term. A bearish harami Pattern is a reversal pattern usually appears in an uptrend. The Body, red, is within the trading range of previous day and is having a gap down open. A failed attempt is seen to breach previous days extreme points but close is lower than open.
Global cues were negative and despite that market managed to open in green though couldn’t sustain it for not more than few early hours as failure to breach and sustain 10400 gave sidelined bears an entry they were longing for. It has also breached its 7 days consecutive price structure of closing higher as compared to previous day.
In short term, 10400 is the line of action for bulls to remain in the game and further stretch the rally to next important zones of 10480 -10550. A recent support and base formation at 10300 will be crucial for this move. On the flip side if we see a move below 10300 with closing basis then we may see a further correction to 10120.
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