Market failed to hold on to gains made earlier in the session, and ended lower on Monday, dragged down by realty, oil & gas, and PSU bank stocks. The Sensex fell 503 points, to end the day at 58283, and the Nifty was down 143 points at 17368. The markets failed to close above the 17500 level, we witnessed a sharp reversal and the Nifty dropped.
The
Nifty, with a gap up opening, attempted to cross the hurdle of 17635 on the
upside. However it couldn’t sustain in the higher territory. The hourly chart
shows that the index faced resistance near upper end of a rising channel.
Also, in terms of the Fibonacci retracement,
61.8% retracement of the previous fall from 18210 to 16782 acted as a crucial
barrier, which attracted fresh round of selling. Thus the index failed to cross
the hurdle of 17650 on a closing basis. On the daily chart, the index has
formed a Popgun pattern, which makes today’s high of 17639 a key resistance.
The overall structure shows that the short term consolidation is likely to
continue further before the index prepares for a larger up move. On the
downside, the Nifty is expected to fill up a recent gap area, which is near 17500-17600.
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Resistance: 17500, 17600, 17700
Support: 17300, 17200, 17100
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