SURYADEV BANDARI INTRADAY TREND (July 12)
Nifty formed DOJI pattern in daily charts. Its a warning signal to bulls. It opened possibility for trend reversal, still we need confirmation of trend reversal today by forming negative session and close below 10885. Open possibility for EVENING STAR formation. Co-incidentally or in Correlation, Banknifty, Midcap and Small cap indices too formed negative formations yesterday. Global markets too closed in negative. Upside resistance existed at 11000, we still below it. As mentioned earlier, Triangle pattern can end by false breakout. Nifty breakout 10850 two days back, today is 3rd day, usually on 3rd day false breakouts re enters breakout region. In that case, we may test 10850 today. Momentum indicators in overbought zone and showing negative divergence. Today's close is important for trend determination. 1st sign of weakness comes on breaking 10885-10875 zone. Book profits wherever possible and stay in cash. Avoid fresh long positions. Below 10885, Bears get strength and control the market.
10875-10850 next key support for nifty.
Key resistance 11000-11050
- SURYADEV BANDARI, RESEARCH ANALYST