Bulls Out, Bears take control of the street! Technical Perspective of Nifty & Bank Nifty No ratings yet.

Indian Indices witnessed a third consecutive Gap down opening  on 6th December. Nifty opened 70 points lower at 10,718.15 and the selling pressure continued through out the session. The index plunged another 130 points from its opening price due to strong bearish sentiment across the street and made a low at 10,588.25.  At the end, the index closed off- the lows at 10,601.15 shedding a robust 1.69%!

Bank Nifty also witnessed a weak opening at 26,339.10, down 180.50 points from the previous closing. It made a low at 26,149.45 and ended the session near the lows at 26,198.30.

Among the sectors, almost all sectors ended the day with measurable losses. The ones that lead the pack were IT, Realty and Auto, each of them losing more than 2% in trade.



Technical View-

We have been maintaining a cautious and Bearish view on Nifty and Bank Nifty since last 3 sessions (READ our past analysis HERE) and Nifty has since then plunged almost 250 points whereas Bank Nifty has plunged almost 800 points!

As per the latest chart patterns, Nifty is still looking very weak. It had 3 consecutive gap downs and a bearish long red candle in today’s trade which hints at further lower levels if the immediate support (S1) of 10,587 is broken in next session.

A zoomed in look at the 30 minutes and hourly charts also display a break in uptrend line which further signal possibility of more lower levels in Intraday as well as in short term.The immediate resistance (R1) is placed at 10,630 levels. Intraday Support (S1) stands at 10,587 levels.

Technical picture of Bank Nifty also displays a Bearish scenario and Intraday traders may look to short sell Bank Index below the immediate support of (S1) of 26,149. The intraday resistance (R1) is placed at 26,250.

Trading Tip 

  • Intraday and short term shall focus on taking the sell side trades, as of now.
  • Aggressive longs shall be avoided at this point of time

Nifty Trading levels/Trade Date- 7/12/2018

Buy above 10,630 for targets of 10,650/10,665

Sell below 10,587 for targets of 10,555/10,480


Bank Nifty Trading levels/Trade Date- 7/12/2018

Buy above 26,250 for targets of 26,290/26,330

Sell below 26,149 for targets of 26,105/25,970

*All levels mentioned are of cash/ spot segment.

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Author: Traders' Chowk

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