Yesterday Nifty corrected 245 points, slipped from day’s high 18652 then intraday basis breached all short term moving averages & even after breaking crucial 18500 mark corrected upto exactly 30EMA i.e. at 18380 & finally settled near day’s low at 18415.
Nifty formed a long bearish candle on the daily charts and also Evening Star kind of pattern which are indicating possibility of further weakness in coming sessions. This was the big bearish Engulfing candle snapping previous 3days winning streak amid weakness in global counterparts after the Federal Reserve hinted at more interest rate hikes going ahead.
According to overall chart pattern & as per indicators movements based on daily as well as weekly are not a good sign and indicate more weakness in the short term. Traders should maintain cautious stance at current juncture. Down side below 18380 next slab 18270. Any fresh breaches indication of more weakness & may tend towards 18150/100. Bulls should protect that. On the flipside bullish strength will resume only after crossing & stays above 18666/700 mark. Intraday basis hurdles are :- 18444-18496 & major 18555/600.
Options data suggested that the Nifty may trade in a range of 18200 to 18650 levels in coming sessions. India VIX was up by 6.57% from 12.89 to 13.73 levels.
Yesterday Bank Nifty also formed a long bearish candle on the daily charts and also formed an Evening Star kind of pattern in its uptrend, indicating more weakness in coming sessions.
1st weakness below 5DSMA 43750 & as long as sustains below that weakness could be seen towards 43250 and 43000 levels, whereas on the flip side resistances are above 43750 – 44000/44200 levels.
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