From the past 4 weeks, the index has been trading in the range of 17770 to 18200. The underlying tone of the market is sideways to negative as the index had formed a bearish engulfing pattern on the monthly chart which is a bearish reversal sign. On the lower side, the index has strong support at 17800 level as it is neckline of Inverted head and shoulder pattern and 100 EMA support on daily chart. With the Nifty trading in the range of 17,770 to 18,200 for the last four weeks, any downward reaction around 17,200 to 16,800 can be considered a good buy opportunity, says Kapil Shah, Technical Analyst at Emkay Global Financial Services. “Moving above 17,400 level, buyers will regain their strength,” he says. Edited excerpts from an interview: Nifty showed support at 17,600 level during the week but faced resistance above the 18,100 zone. Do you expect the coming week to be a sideways market? From the past 4 weeks, the index has been trading in the range of 17770 to 18200. The underlying tone of the market is sideways to negative as the index had formed a bearish engulfing pattern on the monthly chart which […]
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