- Mallampally as new mandal
- The list of LS ticket prospects becomes longer in Kerala
- Sitharaman credits Narasimha Rao for bringing 33% reservation for women at Panchayat level
- High-speed train between Ahmedabad & Sanand to commence operations in 6 months
- Delhi Police file charge sheet before court in Pragati Maidan tunnel robbery case
- India 'oldest democracy', publish books presenting its journey to world: Om Birla to publishers
- Women's representation in policymaking now set to increase significantly, says Anurag Thakur
- Assam government waives off loans of 2.2 lakh women
- I don't think anyone in world cricket at the moment would have a seam position as good as Shami: Harbhajan Singh
- Two terrorists arrested in J&K’s Baramulla
Directional move expected on indices
Nifty forms a bearish engulfing pattern on a daily scale covering the entire 4 days of price action indicating a strong caution on the higher levels of 18,350.
Nifty forms a bearish engulfing pattern on a daily scale covering the entire 4 days of price action indicating a strong caution on the higher levels of 18,350. A bearish engulfing is a candlestick reversal pattern that indicates a reversal in an uptrend.
The reliability of this pattern improves when it is formed after a sustained uptrend, at a previous resistance level with higher volume and volatility. It is now very important to watch tomorrow's price action as the Index is able to sustain supports or further selling pressure takes benchmark to test lower levels. On the downside, support is placed at 18,090 and if that is breached and we see sustained selling pressure then we can test lower levels of 17,950 – 17,900. On the higher side, 18,250 – 18,280 now is an important resistance.
BankNifty also shredded its day's entire gain of more than a per cent to close lower with marginal loss. BankNifty point of support is 38,050 and below that, we may see lower levels of 37,550.
The volatility in today's price action was fuelled by the press conference which was scheduled later and hence Fear was evident. From here a directional move is expected in both the indices as per bar patterns analysis rolling back to the last 22 days. During high volatility, we suggest keeping important supports and resistance in check and trade with tight levels for risk management.
(The author is technical analyst at Finversify)