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Daily Technical View on Nifty

Bullish Engulfing Candle on Daily Charts

* After forming “Doji” candlestick pattern on 7th March 2022, Nifty has formed bullish “Engulfing” candlestick pattern on the daily chart, which indicates the short term trend reversal. § Most of the large cap stocks got oversold on the short term charts and they helped Nifty to give pullback after deep cut.

* Short term Resistance for the Nifty is seen at its 5 days EMA, which is currently placed at 16204 § Before 5 days EMA, there is also a gap resistance placed in the range of 16028-16133.

* Far resistance is seen at 16500.

*  Short term Support for the Nifty is seen at 15800.

* Positional trend of Nifty is still bearish with lower tops and lower bottoms and therefore it would be advisable to trade longs with trailing stop loss.

* Healthcare, Pharma and IT sectors are looking strongest amongst all and the chances of giving sustainable pullback seems higher in these indices.

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