Today's market report

Nifty on the daily chart formed hammer with a Red body indicating bulls strength on the lower levels. A Hammer is reversal pattern found in downtrend with lower shadow at least twice as big as body while body can be bullish or bearish. The upper wick in Hammer is very small or negligible.

Nifty in the intraday managed to hold 8280 with bulls entering at lower levels given the trend line support which comes at 8280 by drawing two previous tops. As we mentioned, change of polarity was seen with previous resistance zones of 8280 - 8300 are now acting as strong support. Bulls did try to take the opportunity and took market higher to close at 8323. For now support for market comes at 8280 - 8260 while upward resistance comes at 8350 - 8370. A close above resistance level will trigger further buying in market else the consolidation will remain in the scenario.

What’s interesting on chart is we haven't had continuous formation of four negative candles in past 3 month and pattern wise a bullish formation is seen on every 4th Candle. If on Monday we are well supported by bears we may see bulls trying to take charge and squeeze out bears to extend the momentum in their favor and continue the price pattern towards higher levels as is followed in past few months post bottom at 6826.

by Mr Mustafa Nadeem, CEO, Epic Research Pvt. Ltd.