Below is the Views On Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking)
“The index started trading on a positive note today, however, after consolidating in a range for first hour of the trade, it corrected upto 10450 mark. We saw a pullback again towards the opening level but the Nifty then witnessed a selling pressure for rest of the session and ended with a cut of about one and a half percent around 10300.
Post opening on a positive note, Nifty approached the level of 10550 which was the trendline resistance of the ‘Rising Wedge’ pattern on the daily chart. Also, as mentioned in our yesterday’s outlook, this also coincided with the resistance end of a ‘Wolfe Wave’ pattern on the daily chart of Nifty. The index precisely corrected from this resistance today and it ended with a deep cut and has formed a ‘Bearish Engulfing’ pattern. This pattern, at the above mentioned resistance point is a cautious signs for the bulls. Some of the other sectoral indices too have formed a similar candlestick pattern on their respective charts. The next couple of sessions would be crucial to see how the market reacts hereon. Hence, traders should prefer to stay light on positions for time being and keep a wait and watch approach. The immediate supports for Nifty are placed around 10200 followed by 10100 whereas resistances are seen around 10480 and 10550.”
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