INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nity50 on Wednesday declined for the third straight session to settle below the crucial support at 11,250 level
The index formed a candle similar to Three Black Crows, a bearish pattern, on the daily chart, and the index is now bracing for the 11,171
level.
The formation of Three Black Crows candle and lower highs and lower lows on the daily chart indicates that the bears are having a
tight grip on the market, said Chandan Taparia of Motilal Oswal Securities, who believes the index may drift towards the previous swing high
level, which would now act as a crucial resistance going ahead
Any sustainable move above 11,260 will trigger an intraday bounce towards 11,300 and 11,330 levels
On the downside, the 11160 level shall be key to watch out for
Daily strength indicator RSI and momentum indicator Stochastic both were in the negative zone.
Mazhar Mohammad of Chartviewindia.in though
believes positional traders can initiate fresh longs as the Nifty50 trades in the 11,100-11,000 zone.
