Nifty yet again hits a new all-time high of 11760 and makes a Doji pattern on the Daily chart. The momentum was seen continuing but a bit loss of breadth was seen as profit booking and higher decliners as compared to advance spoiled the game for bulls.
A doji Pattern is an indecisive candlestick pattern since the open and close is almost the same while the equal shadows on both sides represent a neutral day between bulls and bears. This also implicates the fact that after a long candlestick day we have witnessed on Monday, today, being Doji, saw an exhaustion of bulls.
There are multiple areas of resistance in Nifty in the zone of 11800 – 11850. We expect this to be a critical resistance and as we approach that level bulls would need a closing above it else bears may capitalize on the psychological grounds.
That, we have expiry for F&O series and for last three months the data for rollovers has been good favoring the bulls. It will be critical to see the rollovers numbers and any decline in average rollover numbers or that of specifically that heavyweights who have been leading the momentum; might hurt the medium term sentiment.
We remain a buy on dips while we also suggest trailing the stop-loss for short term at 11610 Zone.
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