Update - 12:15 PM 17th June 2019
As expected, Nifty, after rising for a while, took resistance near the mentione area near 12k levels, and fell sharply from thereon to trade currently near the crucial, 38.2% retracement mark of 11700-11720, below this the next support zone would be directly near the gap up area of 11400-11600.....
Traders who have shorts at the higher levels can book partial profits and trail stop loss at cost.
Nifty also formed a lower top lower bottom on daily charts, which is a sign of huge concerns for bulls and short term bias remains negative untill Nifty surpasses 12k now.
Cheers...
Hrishi
Hi all,
Benchmark index, Nifty did not respect the bearish Shooting star pattern on hourly charts and markets sailed thorough the life time highs, Nifty crossed 12100 mark whereas Sensex touched 40300 levels.
I personally feel, all this happened, as a run up to the monetary policy review (Buy the rumour), which was due for 6th June, and suddenly after the Repo rate cut of 25 basis points (0.25%) was announced, the markets sold badly (Sell the Fact) and closed negative by almost 1.5%
However, while doing so, there were 2 bearish observations -
1. On the daily chart, Nifty benchmark indices created a Bearish Harami Pattern on 3rd and 4th June candles, just for the context, Nifty had created a Bullish Harami pattern near the lows of 11100 on 13th and 14th May, thanks to which Nifty saw an upward rally of around thousand points.
The only concern for the bearish view could be that, on hourly charts today, Nifty created a Bullish Hammer pattern and hence today's low near 11750 would act as very crucial
2. There is an inter market (index) candle divergence between Nifty and Sensex where Sensex crossed its 3rd June high on 4th, but Nifty failed to do that. This, may not be very material and called as classic inter market divergence but I feel, after coupling it with the bearish Harami, this might mean something.
Going forward now, 11700-11720, which is 38.2% retracement of the entire up move from 11100 to 12100 and would be initial support for Nifty. Post that, a support area of the upward gap between 11420-11600 would be very crucial for Nifty as even the 50% and 61.8% retracement levels and Supertrend support are within this range.
On the higher side, 11900-11980-12080-12103/20 would be crucial resistances and can be used as selling opportunities for the Sell on rise short term view, only and only after other bearish evidences on daily / intraday charts...
The short term bias would still remain negative with reversals above the life high of 12100 - 12120, however the mid term bias remains positive with reversals below the crucial support zone pf 11400-11600.
Cheers...
Hrishi
As expected, Nifty, after rising for a while, took resistance near the mentione area near 12k levels, and fell sharply from thereon to trade currently near the crucial, 38.2% retracement mark of 11700-11720, below this the next support zone would be directly near the gap up area of 11400-11600.....
Traders who have shorts at the higher levels can book partial profits and trail stop loss at cost.
Nifty also formed a lower top lower bottom on daily charts, which is a sign of huge concerns for bulls and short term bias remains negative untill Nifty surpasses 12k now.
Cheers...
Hrishi
Hi all,
Benchmark index, Nifty did not respect the bearish Shooting star pattern on hourly charts and markets sailed thorough the life time highs, Nifty crossed 12100 mark whereas Sensex touched 40300 levels.
I personally feel, all this happened, as a run up to the monetary policy review (Buy the rumour), which was due for 6th June, and suddenly after the Repo rate cut of 25 basis points (0.25%) was announced, the markets sold badly (Sell the Fact) and closed negative by almost 1.5%
However, while doing so, there were 2 bearish observations -
1. On the daily chart, Nifty benchmark indices created a Bearish Harami Pattern on 3rd and 4th June candles, just for the context, Nifty had created a Bullish Harami pattern near the lows of 11100 on 13th and 14th May, thanks to which Nifty saw an upward rally of around thousand points.
The only concern for the bearish view could be that, on hourly charts today, Nifty created a Bullish Hammer pattern and hence today's low near 11750 would act as very crucial
2. There is an inter market (index) candle divergence between Nifty and Sensex where Sensex crossed its 3rd June high on 4th, but Nifty failed to do that. This, may not be very material and called as classic inter market divergence but I feel, after coupling it with the bearish Harami, this might mean something.
Going forward now, 11700-11720, which is 38.2% retracement of the entire up move from 11100 to 12100 and would be initial support for Nifty. Post that, a support area of the upward gap between 11420-11600 would be very crucial for Nifty as even the 50% and 61.8% retracement levels and Supertrend support are within this range.
On the higher side, 11900-11980-12080-12103/20 would be crucial resistances and can be used as selling opportunities for the Sell on rise short term view, only and only after other bearish evidences on daily / intraday charts...
The short term bias would still remain negative with reversals above the life high of 12100 - 12120, however the mid term bias remains positive with reversals below the crucial support zone pf 11400-11600.
Cheers...
Hrishi
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