There was a shooting star pattern on sensex chart yesterday and we said this candle pattern needs a downside follow up the follow up seemed to be there for the most part of the day lead by the selling in banking stocks but sensex bounced back from 19824 still closed a few points down.
For three days in a row its been very sideways movement for sensex we need to have a decisive break of this range 20217-19824 on closing basis to decide short term trend.
Yesterday we said this ‘Fridays low which is 19877 and the bunch of moving averages which are placed upto 19828 is the support area to watch today if sensex closes below these levels again then the rise from 18954 could prove to be only a corrective rise.’
Look how the bunch of moving averages at 19828 supported sensex yesterday. Today also we need to close below this level to decide the trend or for any uptrend to resume we need to close above 20088 atleast for a day.
Nifty went below Fridays low of 5964 but recovered smartly in late trades and failed to close below 5924 as we mentioned yesterday and we repeat it today that nifty close below 5924 may open further downside upto 5835 and lower levels if this is a higher bottom formation process nifty may find support somewhere near 5800.
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