The Nifty after gap up opening continued to be
volatile throughout the session. It made attempt twice - in morning and in late
trade - to touch 10,400 levels but saw selling pressure both the time due to
new rupee low and crude volatility. The Nifty ended around 10300, while the
Sensex closed over 170 points lower. At the close of market hours, the
Sensex closed down 174 points at 34299. The Nifty opened sharply higher at
10390 and touched an intraday high of 10397, but gradually wiped out gains in
morning trade itself to trade lower. In the last hour of trade, it rebounded,
but within few minutes of trade, it caught in bear trap again and fell sharply
to hit day's low of 10279. The index closed 47 points lower at 10301 amid
volatility.
The index closed tad above 10,300 and made a bearish candle formation on the daily charts which resembles like a 'Bearish Engulfing' pattern. A Bearish Engulfing Pattern consists of two candles. One candle is usually a small candle which is followed by a large black or red candlestick pattern that engulfs the short one or the previous candle. A bearish candlestick pattern suggests that bears were able to regain control after the index moved in a narrow range for the past few sessions. Market continued to remain volatile as pull back attempt was aborted almost around Monday’s high of 10398 levels before signing off the session with a bearish candle which resembles a Bearish Engulfing formation as today's candle body engulfed the candle body of Monday's session. Intraday pull back attempts can be expected Nifty may not gain sufficient strength unless it registers a close above 10500 level. On the downsides, breach of 10190 can give enough impetus to bears once again to push the indices below 10100 levels. Hence, it looks prudent on the part of traders to stay away from this market till volatility subsides.
More about intraday tips on Google +
Resistance: 10450, 10500
Support: 10200, 10100
The index closed tad above 10,300 and made a bearish candle formation on the daily charts which resembles like a 'Bearish Engulfing' pattern. A Bearish Engulfing Pattern consists of two candles. One candle is usually a small candle which is followed by a large black or red candlestick pattern that engulfs the short one or the previous candle. A bearish candlestick pattern suggests that bears were able to regain control after the index moved in a narrow range for the past few sessions. Market continued to remain volatile as pull back attempt was aborted almost around Monday’s high of 10398 levels before signing off the session with a bearish candle which resembles a Bearish Engulfing formation as today's candle body engulfed the candle body of Monday's session. Intraday pull back attempts can be expected Nifty may not gain sufficient strength unless it registers a close above 10500 level. On the downsides, breach of 10190 can give enough impetus to bears once again to push the indices below 10100 levels. Hence, it looks prudent on the part of traders to stay away from this market till volatility subsides.
More about intraday tips on Google +
Resistance: 10450, 10500
Support: 10200, 10100
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