Another dull day for the bulls in the markets; where prices went up initially near 8700 levels.
NIFTY: Another dull day for the bulls in the markets; where prices went up initially near 8700 levels and found resistance there again. So, 8700-8750 seems to be a strong resistance zone in the Nifty in the short term. Nifty has seen a choppy phase from last four- five trading session. A Bearish Head & Shoulder pattern is in making in Nifty index in the 60-min time frame; it will get confirmed below 8580 level which acts as a neckline for this pattern. We have also given a chart below which explains this bearish pattern more clearly. Primary trend is up so traders should trade this pattern with lower volumes initially and if trade goes in favor then one can look to add some positions with the potential profitable positions.
Bank Nifty had a narrow and choppy day in the markets where prices closed lower on third consecutive day. The index opened flat and went higher in initial trade before coming down below 18700. Prices then recovered marginally and closed above 18700 levels. On the daily charts, prices are still trading sideways in a range (18550-19150). As far as prices are trading range bound, traders should avoid trading in this index. However, third consecutive lower closing changed the bullish view to sideways.
Therefore, any trading opportunity will come only when we see a breakout from the above range. Nifty is making a Bearish Head & Shoulder pattern in 60-min time frame so possibility of downside breakout is higher. Hence, if price goes below 18500 tomorrow, then traders should positioned themselves on the short side of the index. If that trade executes then put a stop loss above 18750.
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