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Episode 1998, Dec 10, 2019, 02:00 AM
For the week ended December 6, 2019, Nifty lost 1.12 percent and ended with bearish engulfing candlestick pattern on the weekly charts.
Bank Nifty plunged 1.89 percent and underperformed the Nifty. Mid-cap and Small-cap indices plummeted 2.89 percent and 2.03 percent, respectively. Nifty’s open and high remained the same for the week, which indicates a probable bearish trend reversal.
Nifty took resistance at an upward sloping trend line on the monthly line charts and reversed south thereafter. The index has violated support of its 20 days EMA, placed at 11,960. Indicators and oscillators like MACD, RSI and DMI have turned bearish on the daily charts.
Resistance for Nifty has shifted downward to 12,080, which can be kept as a stop loss in short positions.
Nifty and Bank Nifty ended with the Doji candlestick pattern on December 9. Any level below 11,883 would aggravate the selling pressure on Nifty.
Previous resistance of 11,700 could interchange its role as a support for Nifty going forward.
Bank Nifty has violated the crucial support of 31,444, which could lead to further selling in the index. Support for Bank Nifty is seen at 30,800.
Nifty 100, Nifty 200 and Nifty 500 Indices have formed bearish engulfing candlestick pattern and that too on the important trend line resistance on the weekly charts.