Nifty ended in the red but formed a bullish candle on the weekly chart.
Nifty opened in the green and traded higher in the first half of the session amid positive global cues.
Nifty snapped their 3day winning run as investors booked profit after a stellar record-setting spree in the market.
Although we can expect some fight between bulls and bears, every dip would be a buying opportunity.
Despite a strong opening, domestic indices gave up early gains to trade flat driven by profit-booking and mixed global sentiments. PSU Banks were heavily wounded by profit-booking although the government approved a guarantee of Rs 30,600 crores to the National Asset Reconstruction Company Ltd with an aim to clean stressed assets from the banking sector. Global markets traded cautiously bracing for the Fed Reserve and Bank of England policy meetings next week.
Bullish momentum continued today and both benchmark indices touched fresh highs but investors showed signs of nervousness as the market witnessed a late bout of profit-taking towards the closing stages.
Besides, positive reports on the front of vaccination also underpinned sentiment. Reports suggest India's pace of vaccination has gained momentum since last month with more than one crore daily COVID-19 vaccinations being completed for the fourth time today.
Nifty maintained uptrend continuation formation which is broadly positive but due to temporary overbought situation, bulls may prefer to take a cautious stance near the 17800 resistance level.
Nifty has witnessed good profit booking and formed a dark cloud-cover sort of candle pattern on the daily chart which is considered to be a bearish reversal pattern by nature so any break below 17530 may drag down the index.
For Nifty, 17700 would be the immediate resistance level trader will have to look at, and below the same, the correction wave is likely to continue up to 17436/17386 level.
If the index trades above 17700, the uptrend texture will continue up to 17800/17950 level. Contra traders can take a long bet near 17386 with a strict 17300 support stop loss.
At present, Nifty may find resistance around 17800 while on the downside, 17436 may act as support for the index.
Sector Wise :- Nifty PSU Bank fell 3 percent, followed by metal and realty indices which fell over 2 percent each. On the other hand, Nifty Media climbed a percent. Bank and financial services indices rose up to half a percent.