"Nifty has formed 'Dragon Fly' candlestick pattern around key hurdle zone i.e. 50 and 100 SMA which coincides at 10,440 levels and 38.20 percent Retracement levels on daily time frame. The Index has to close above 10,440 levels for further upmove," says Rajesh Agarwal of AUM Capital.
By Rajesh Agarwal
Benchmarks closed with marginal gains on profit booking in oil & gas, bank, financial, energy, FMCG and utilities sectors despite higher Asian cues. Sentiment was also subdued on concerns that inflation worries could resurface on the back of rising crude oil prices.
Brent crude futures surged more than 3 percent on Tuesday to their highest since late 2014, at USD 71.34 a barrel. OMCs slumped following reports that the government is asking these firms to absorb price hikes. Investors are focusing on key domestic cues of retail inflation data and industrial production data due tomorrow and corporate results starting Friday.
Nifty has formed 'Dragon Fly' candlestick pattern around key hurdle zone i.e. 50 and 100 SMA which coincides at 10,440 levels and 38.20 percent Retracement levels (Drawn from high of 11,171.55 to low of 9,951.90) on daily time frame. This pattern is a Bearish Reversal Pattern. Now, the Index has to close above 10,440 levels for further upmove.
If it sustains below or fails to cross this mark, Nifty may witness a correction till 10,340 and 10,270 zone. Furthermore, RSI (14) has given Negative crossover.
Nifty Bank has formed 'Hanging Man' pattern around 50 SMA and 100 SMA on daily time frame. This pattern occurs mainly at the top of uptrends and can act as a warning of a potential reversal downward. It is important to emphasize that the Hanging Man pattern is a warning of potential price change, not a signal to go short. Near term hurdle seen around 25420 levels i.e. 100 SMA. Moreover, it is currently trading around 38.2 percent Retracement level on daily time frame.
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