Thew are some technical evidences in Nifty chart, which are worth noticing. the index is moving in 9550-9700 range for last twenty trading sessions. This type of movement after a prolong upmove generally suggests tiredness, especially when Nifty is at all time high.
Average movement has been only 65-70 points in this last twenty trading sessions A surprising finding is that 'open to close' is higher in only six trading session while fourteen trading session witnessed lower 'open to close'. Volume were lower in up days and down days witnessed relatively higher volume.
The attached chart indicated further weakness whenever Nifty breaks 9530, where we have support of a moving average. Nifty did not break this moving average in this ongoing rally.
On the contrary, Nifty could bounce back from these levels (9530-9550). Low range, as happening in last one month, indicates big move in on the way. The chart of Nifty is given below.
Average movement has been only 65-70 points in this last twenty trading sessions A surprising finding is that 'open to close' is higher in only six trading session while fourteen trading session witnessed lower 'open to close'. Volume were lower in up days and down days witnessed relatively higher volume.
The attached chart indicated further weakness whenever Nifty breaks 9530, where we have support of a moving average. Nifty did not break this moving average in this ongoing rally.
On the contrary, Nifty could bounce back from these levels (9530-9550). Low range, as happening in last one month, indicates big move in on the way. The chart of Nifty is given below.
State Bank has formed a bearish reversal pattern subject to decisive break and close below 280.
As per the technical evidences SBI could reverse from 278-280 zone also. Similarly 9530-9550 could be the reversal point for Nifty. Traders should always remember a thumb rule which states, 'Trade on confirmation, not on anticipation'.
And if bulls regain control in next few days, then we may look at Vedanta. It is in process of forming a bullish reversal formation. Decisive crossover and stay above 248-250 may fuel a 10% rally. Please find the chart below.
Disclaimer - The views here expressed and the charts shared are strictly for educational purpose and not guideline for buy or sell. The author will not be responsible for any loss, that may occur.
