Friday 19 January 2018


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We expect that Nifty will continue to trade in a broad range of 10,880-10,660 levels but in this 200-point band. It will be quite volatile.The recent rally was undoubtedly dominated by the technology and banking space which had underperformed the benchmark indices in the past several weeks.


In the last 3 trading sessions, index witnessed mammoth buying interest on the back of a sharp rally in ICICI Bank followed by HDFC Bank and Axis Bank.


As a result, we saw renewed buying interest which drove the Nifty index into a new territory.The momentum continued in Thursday’s session, as index opened higher with a significant gap, however bulls lost its control which led to decent profit booking during the second half.


At this juncture, Nifty broke the rising channel formation drawn by joining the top of August 02, 2017 and November 06, 2017.


Thursday’s candle resembles a formation of Bearish counterattack line. The said pattern is a bearish pattern and it will confirm if index starts sustaining below the candle low of 10,782.

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