Markets behaved on expected lines today and confirmed the potential bearishness present in the system. Today, markets formed a harami pattern (and a tweezers top spinning top) formation. This comes at a very stiff resistance level of 5360 5400. Two dojis formed three sessions earlier were followed with bearish engulfing pattern on the 8th of April. Following these, today the market has formed a harami pattern. All these patterns are very strong reversal patterns. Furthermore, Nifty is very close to a rising trend line and any violation of the trendline (red line) supported by the above mentioned patterns is going to provide good opportunity on the short side.
Going by the three day away rule, we can comfortably state that Nifty has now formed a minor top at 5399. The trend will turn positive if this level is taken out on closing basis. Thus for now, the key level is 5400. Strong support lies at 5300 - 5310.
Going by the three day away rule, we can comfortably state that Nifty has now formed a minor top at 5399. The trend will turn positive if this level is taken out on closing basis. Thus for now, the key level is 5400. Strong support lies at 5300 - 5310.