Nifty declines making a bearish engulfing pattern along with failing to sustain the 10K mark and close below it. An exhaustive run in last few days with less breadth also resulted in profit booking at higher levels while writers put further pressure on the upside levels.
A bearish engulfing pattern is usually a big candle which , red, completely covers the previous trading sessions gains and marks a bearish engulfing pattern. A bearish engulfing pattern is highly bearish pattern which indicates the strength of bears at upper levels. Not to mention this time this is formed at 10 mark making investors confidence further shaky as any upside for now ill be ruled out by bears.
Nifty also saw declines as writers at 10000 Calls were aggressive while the range shrink with resistances further coming at 10100 strikes. We are now seeing 9900 as a crucial mark. If this particular level is breached then the correction may be deeper. As far as in short term we believe the range to be between 9900 – 10050.
Immediate basis support is seen at 9920 and 9850 while Nifty may see some resistance at 10000 10050. We are cuatious in short term with further Profit booking expected. We dont have any short term bias as market will give further cues to us going forward.
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