The index started green, but quickly lost momentum under pressure due to the strong dollar and soaring energy prices. The Nifty50 recorded a complete reversal formation with a high during the day at 17,885 levels and a low top. It closed at 17,646 with 176.30 points (down 0.99%).
“The possibility of Nifty Retesting recent lows remains high as long as they are trading below the 17,600 level in the next one or two sessions. Traders advise not to buy dips in a hurry, but high-risk appetite position traders can run short in the 17,700-750 zone by setting a stop loss of over 17,885 and looking for 17,500 targets. There is sex. Strategist, Chartviewindia.in.
The bear started a new selling round at the highs of the day, causing a sharp drop later in the session. As a result, Nifty formed a bearish outer bar with the Engulfing Bear Candle on the daily chart.
“Short-term integration is expected to continue. Structurally, the index can take the form of a triangular pattern, which also means integration in the next few sessions. , The index is expected to test the support zone at 17,500-17,450, while the 17,700-17,750 zone acts as an immediate resistance zone, “said Gaurav Ratnaparkhi, Head of Technical Research at BNP Paribas. ..
However, despite short-term issues, analysts say the medium-term trend remains positive.
Nifty 50 continues to be on a medium-term uptrend and is expected to conquer the 18,500 level in the future, said Sahaji Agrawar, head of research derivatives at Kotaku Securities.
“We recommend buying in a dip. Metals are showing early signs of a reversal, but the NBFC space is expected to continue to function. The midcaps are also maintaining momentum and outperformance will continue. It’s expected, “he said.
India VIX, a barometer of market volatility and horror that had fallen for several days, rose nearly 6% to 17.33. This suggests that prudence is pervasive among traders.
“The Nifty 50 has definitively broke through the majority of support zones. From now on, the immediate support zone will be closer to the 17,600-17,500 zone. If it is maintained, we can expect a quick pullback, but 17,700-. There is ample resistance near the 17,770 zone, said Rohit Singre, senior technical analysts at LKP Securities.
Nifty: Tech View: Nifty50 forms a bearish entrainment pattern.Avoid longing for now
https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-forms-a-bearish-engulfing-pattern-avoid-longs-for-now/articleshow/86811220.cms Nifty: Tech View: Nifty50 forms a bearish entrainment pattern.Avoid longing for now