The Nifty50 failed to hold on to the momentum witnessed in the opening trade and closed below its crucial level of 8,800 on Friday. It formed a 'Long-Legged Doji' kind of pattern on the daily candlestick chart, which suggests caution.
A typical 'Long-Legged Doji' pattern is formed when the opening price is almost equal to the closing price, but there was a lot of movement on both sides. The Nifty50 opened trading at 8,780 and closed at 8,779 on Friday.
The pattern suggests neither the bulls nor the bears were able to regain control on Dalal Street, which signals a shift in market direction in the days ahead.
The pattern does suggest uncertainty, but traders should not go short on the index now and wait for confirmation. If the Nifty50 slips below the 8,750 level, further weakness cannot be ruled out.
The Nifty50 opened at 8,780 and rose to an intraday high of 8,847, thus forming a long upper shadow. It fell to an intraday low of 8,750, which resulted in a long lower shadow.
"The Nifty50 registered a 'Long-Legged Doji' kind of formation on the Japanese candlestick charts, as the strong intraday rally was sold off from the critical resistance point of 8,850 level," said Mazhar Mohammad, Chief Strategist - Technical Research & Trading Advisory, Chartviewindia.in.
Looking for investment in Share Market, CapitalStars Financial Research Private Limited provides you best investments Tips in Share Market.It daily provides intraday and Future calls with profit assurity. You can plan your Future investments with us, Join and take our services and get benefits.
0 comments:
Post a Comment