Nifty
50 on last Friday closed at 24530.90(-1.09%) fell around 270 points. It has
made a Bearish Engulfing pattern on that day.
The range of the
engulfing candle is 24510 to 24850.If nifty trade below 24510 decisively, then
we can see huge selling in coming days. Next support of Nifty 50 is at 24380 level,
and then 24180.The strong support is at 24000 which if broken, we may see 23600
level in Nifty.
It has immediate
resistance at 24850 to 24880 level. We can see selling pressure at this level,
if Nifty tries to go upward.
If Nifty can trade
above 24880 level decisively it can touch the big psychological level of 25000.
Overall sentiment in
the market is bullish. FPIs, DIIs and retail players are buying heavily. Some
profit booking may happen or we may see some time wise correction in the market
before the budget to be presented on 23rd July, 2024.
In weekly time frame,
Nifty last week has made a Shooting Star Candle, which is also a bearish signal
for the time being. Traders should be cautious before the budget and should
closely monitor how market reacts to the budget.
Now we should wait and
watch the reactions of the budget day announcement by the Fin. Minister Nirmala
Sitaraman on 23rd July. After the event, we can take our next actions as per
the levels of Nifty 50.
Bearish engulfing pattern and shooting star
Candlestick Pattern both are trend reversal pattern. If these patterns form at
the resistance after a long uptrend it can reverse the trend from bullish to
bearish. Now ,we can see that both the patterns formed in Nifty just at the
resistance levels, one on daily time frame and another is on weekly time frame.
So be cautious while taking trade or follow strict stop loss in the system. Happy
trading.
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
