Observation
Initiate Shorts below 6298 & Hold existing with the stop of 6360. (All levels in Spot)
Day’s action formed a hammer sort of candle pattern with good volumes which is a bearish reversal pattern; here it’s
not an exact hammer pattern but we could consider it to be bearish if price moves below 6298.
Technically, another lackluster day, very narrow movement witnessed in the index; no significant price development
either side. Our bearish setup is still intact as index trades below 6360. The recent price development indicates that
index is forming complex corrective pattern. Internals are W-X-Y (earlier it was simple correction – A-B-C). As it is a
complex correction it is slightly difficult to predict the exact levels. Overall we are in the crucial stage of the corrective
phase; however don’t fall in love with bulls until our levels have taken out (6360). The prevailing down trend is still
intact. And reversal level is placed at 6360 for near term and 6415 for short term, unless violation of these levels
trend remains down for the target of 6130 – 6070 in near term and 5970 in short term.
Traders who are holding shorts (initiated at 6285 – partially booked around 6220 - 6200) can hold with the stoploss of
6360 on intraday basis. Initiate new short positions on a fall below 6298. In case any breakout above 6360; traders
may maintain mildly positive bias till 6415
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