Markets closed in the red today... after 2 days of correction, this is the first day where we are seeing evidence of buying followed by selling at higher levels. This is reflected in the EOD candlestick chart (upper tail) and also intraday charts.
Formation of an upper tail after a mild correction is usually bullish.
Option writing points to support at 6000 and resistance at 6400.
For a trend reversal, we need close below 6080 spot followed by formation of a lower swing high.
Intraday charts show selling at higher levels. The horizontal lines refer to intraday supports and resistances formed break of which led to a new trend.
BNIFTY is trading close to trendline support... however I would look at close below 10680 as indication of trend reversal.
Formation of an upper tail after a mild correction is usually bullish.
Option writing points to support at 6000 and resistance at 6400.
For a trend reversal, we need close below 6080 spot followed by formation of a lower swing high.
Intraday charts show selling at higher levels. The horizontal lines refer to intraday supports and resistances formed break of which led to a new trend.
BNIFTY is trading close to trendline support... however I would look at close below 10680 as indication of trend reversal.
Breakouts today
Source: based on study of publicly available information (websites, media, tv etc) and charts
