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Daily Technical View on Nifty

* Nifty crashed on Dec 20, falling steeply post 1300Hrs.

* At close, Nifty was down 1.41% or 302.9 at 21150.6.

* Cash market volumes on the NSE were below Rs.1 lakh cr at Rs.0.94 lakh cr.

* Broad market indices fell more than the Nifty even as the advance decline ratio fell to 0.11:1 – the lowest in almost a year. ? Nifty had the biggest One-Day fall in a year on Dec 20.

* It also formed an engulfing pattern at the highs suggesting possible of a downward reversal.

* The candle of Dec 20 engulfed the candles of the previous three sessions and filled the upgap formed on Dec 15.

* This candlestick pattern has negative implication at least for the short term

* Nifty seems to have entered a short-term correction and the target in the near term is the 20950-21006 band. ? On upmoves, the 21235-21365 band could act as a resistance.

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