Hot Stocks | Here's why you can buy Jubilant Life Sciences for a short term
Episode 2137, Jan 21, 2020, 03:03 AM
Nifty started the week on a bearish note and lost 1 percent in the first session.
A complete engulfing candlestick pattern is formed on the daily chart of Nifty and Bank Nifty. In the case of Nifty, the engulfing pattern has been formed at the top and this should be considered as a short-term bearish trend reversal.
Nifty has been trading in the upward sloping channel on the weekly charts and the upper band of this channel was projecting a strong resistance in the zone of 12,400-12,430.
Nifty gave respect to this channel and retreated after forming the top at 12,430. Support for the Nifty now comes in the zone of 12,045-12,132, where a big gap was formed on January 9, 2020.
Bank Nifty has been underperforming for the last two weeks and continued its downward journey by losing more than 1.5 percent.
The index has now filled the entire gap which was formed between 31,451 and 31,667 on January 9.