SURYADEV BANDARI INTRADAY TREND (May 17)

SURYADEV BANDARI INTRADAY TREND (May 17)

1st time after a long time, nifty opened and closed below channel support line yesterday. Giving first level confirmation of major trend reversal in market. Banknifty too closed below channel support line as shown in above chart. Both indices retraced 78.6% and formed top reversal formation "GRAVESTONE DOJI" and closed below it next day. Hence, we can treat this signal as valid. Midcap and small cap indices too falling severely. Market in line with Global market trend. US markets too given similar kind of top reversal pattern. Nifty closed below 10761 spot. Next important level is 10600. Once this level breaks down and close below this level, we will get 100% confirmation of major trend reversal in higher degree. Hence, liquidate at least 25-30% portfolio at current levels and wait for lower levels to accumulate. Avoid fresh investment. We may see volatility in market due to KARNATAKA political news. 10950 stiff resistance for nifty. Key support 10600. Sell on Rally market.  Hence, its wise to book profits in Long positions at current levels as risk of retesting of recent lows is huge. Advance Decline ratio showing BEAR grip on market. 

SURYADEV BANDARI, RESEARCH ANALYST

www.earningwave.com



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