Engulfing bear

The Nifty has closed in the negative today and is now
expected to trade lower till 4530. A key support in the
immediate run is around 4580 and resistance will be
faced at 4660.

The Nifty ended in the negative with a loss of 22 points
while the Sensex lost 89 points in today’s trading. Of
the 30 stocks of the Sensex, Reliance Industries and
Tata Steel are expected to move down going forward.
The Nifty has given a negative close on the yearly chart
with an engulfing bear pattern, which is a bearish sign
going forward. The Nifty has been sliding down in the
last few trading sessions, closing below the crucial level
of 4693, which is a bearish sign for the market in the
short term. On the daily chart the index had taken
resistance around its 20 day moving average (DMA)
and has now started the next leg down. The Nifty had
bounced last week in an A-B-C corrective pattern and
has started the next leg down with a target of 4480 in
the short term. Overall on the daily chart the Nifty has
completed wave A and wave B, and the next leg on the
down side as wave C has started.

On the daily chart the Nifty is trading below its 20 DMA
and 40 DMA ie 4774 and 4838 respectively. The
momentum indicator has given a negative crossover
and is trading below the zero line on the daily chart.
On the hourly chart, the Nifty is trading below its 20
hour moving average (HMA) and 40 HMA ie 4676 and
4691 respectively, which are its crucial levels in the
immediate run. The hourly momentum indicators have
given a negative crossover and are trading below the
zero line. The market breadth was negative with 715
advances to 757 declines on the NSE.

Resistance @ 20 DMA

The Nifty has closed in the negative today after a sharp
bounce yesterday; it is now expected to slip down till
4700 in the short term. A key support in the short term
would be around 4900 while resistance will be faced at
5035.

The Nifty ended in the negative with a loss of 72 points
while the Sensex dropped 244 points in today’s trading.
Of the 30 stocks of the Sensex, Kotak Mahindra Bank
and Hindalco Industries are expected to fall further
going forward.

The Nifty has taken resistance around its 20 day moving
average (DMA) ie 5006 and has closed in the negative,
which is a bearish sign for the market. The Nifty has
bounced to retrace the previous correction from 5168
to 4758 and has also taken resistance at the 61.8%
retracement level. The Nifty has retested the previous
swing low of 4720. If it sustains below the same then
the next leg down will confirm for a target of 4350.
On the daily chart the Nifty is trading below its 20 DMA
and 40 DMA ie 5014 and 5075 respectively. On the daily
chart the momentum indicator has given a negative
crossover and is trading below the zero line. On the
hourly chart, the Nifty is trading around its 20 hour
moving average (HMA) and 40 HMA ie 4961 and 4958
respectively, which are its crucial levels in the
immediate run. The hourly momentum indicators have
given a negative crossover and are trading above the
zero line. The market breadth was negative with 505
advances to 954 declines on the NSE.