In a perfect 'Hammer' like pattern, the index would trade significantly lower from its opening price, but rally later in the day to close above the opening level.
Nifty Pharma index is down over 20% from its 52-week high of 13,753.50, which indicates a bearish phase for the index. Glenmark, Cipla are among top losers.
The Nifty50 slipped below its crucial psychological support level of 8,100 on Monday morning, but heavy Put open interest buildup at strike prices 8,100 and 8,000 holds out hope that the market will still find support at these levels.
Bulls failed to keep the momentum going on the first trading day of the week as Sensex fell 300 points; Nifty slipped below its crucial support level at 8,100.
The consolidation phase may continue for some more time and traders are advised not to initiate any short position. However, stock-specific action will go on.
Sectoral indices such as the S&P BSE IT index saw a 3.5 per cent cut, followed by the BSE Healthcare index, which shed 0.9 per cent during the week ended June 10.
For identifying a change in trend or to find out when the market is oversold or overbought, technical analysts have a secret weapon - the ‘Bollinger Bands’.
Nifty50 broke below its crucial support level at 8,200, but closed above its opening level, forming a ‘Shooting Star’ on the daily candlestick charts.
FOMC policy review, BoJ’s policy meet and the Brexit referendum are some of the key events that promise to give equity markets a tough time across the globe.
A bounceback in economic growth is likely to benefit sectors such as consumer discretionary, infra as well as railways, defence, NBFCs, auto and private banks.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon