Hot Stocks: Nifty is stuck between 21 & 50 EMA on the daily chart

Traders’ community looked disappointed since last Friday after the Reserve Bank of India (RBI) maintained a “status quo” stance on the repo rate.

Since the start of this week steep correction was witnessed but it was a bit unexpected to us. Considering the fact that the outcome from the policy was not on the expected note, such a reaction was expected.

Benchmark index on 11th December traded in a narrow range through the day but sudden spike in the last half-an-hour session stretched Nifty to close above 11900 mark and form Bullish Harami candlestick pattern.

The Nifty50 has completed a smaller degree Bullish AB =CD Harmonic pattern on the daily timeline which is well supported with the Fibonacci ratio.

The index formed a Bearish Engulfing Pattern in the previous week which is still valid and the index is trading well below the said pattern.

The NiftyBank has found support near its upward rising trendline connecting to the lows of 19 Sept and 7th Oct. Private Banks are likely to outperform state-run banks in the current scenario.

At the current junction, Nifty is stuck between 21 & 50 EMA on the daily chart which is bounded with 11,950 and 11,800 levels.