NEW DELHI: Nifty50 could barely hold the 11,600 level on Monday, as the index formed a Bearish Engulfing pattern on the daily chart. Analysts said that Tuesdays trading would be crucial, as it may set the tone for the market.
A Bearish Engulfing suggests that the bears are gaining momentum.
“A move below 11,550 will trigger more corrections, dragging the index towards 11,465-11,420 zone. But a trade above 11,650 may trigger short covering rally towards 11,700-11,760. For resumption of bull trend, a close beyond 11,760 is required, otherwise bears may take control of the market and push Nifty down gradually,” said Aditya Agarwala of YES Securities.
Arun Kumar of Reliance Securities said near-term oscillators have triggered a sell call.
“The evolving price pattern indicates corrective action. The index may attempt to find support around 11,460 – 11,500 zone,” he said.
For the day, Nifty fell 61.45 points, or 0.53 per cent, to 11,604.50. The index found some support around key technical moving averages on the hourly chart.
“The subsequent session would be quite crucial, or we can say, may turn out to be a trend decider for the next few days. As of now, we still do not see any major reason to worry and construe this as a part oRead More – Source