Nifty Short Term Outlook

Nifty has been in a short term uptrend forming higher high and higher low formation, which indicates that the market was in a short term uptrend. Today Market has the opening of 10523.95 (previous days closing) and closed at 10305.3(previous days opening), this opening & closing represents that the market has engulfed the previous day's range, that is the bearish engulfing pattern on the daily chart. The formation of a higher high and higher low market has formed a rising wedge pattern. That is the bearish pattern. If we change the chart to a 5Hr chart we get an Evening Star Candlestick Pattern.

If we plot the 10 DEMA on 5hr chart it comes to 10290 around the todays closing and 100 DEMA comes to the around the lower trend line of the wedge. It mean it can take support at this level. RSI has the bearish divergence on the 5hr chart that indicates that the market has lost its strength at current level. According to the chart analysis we are moderately bearish on nifty for dew days. It may touch 9770 and 9400. So be careful for next few days.

Do your own research also before taking any position. Thank You Regards Madan