Neal Bhai Reports — Nifty50 Forms Bearish Belt Hold – 8750 Key Level — The Nifty50 on Tuesday closed below its crucial level of 8800, but managed to hold above its support level at 8750Nifty50 Forms Bearish Belt Hold – 8750 Key Level, which is crucial for the market to sustain the momentum on the upside.
The index moved in a narrow range and developed a `Bearish Belt Hold’ kind of pattern on the daily candlestick charts after forming a `Small Bull’ candle on Monday .
A `Bearish Belt Hold’ pattern is formed when the opening price becomes the highest point of the trading day (intraday high), which means there is no upper shadow and the stock declines throughout the trading day , making up for the large body and a small lower shadow. In Tuesday’s price action, the Nifty50 t opened at 8,816, which was slightly below its intraday high of 8,816. It slipped over 50 points to touch an intraday low of 8,759, thus forming a short lower shadow. The in dex finally closed 32.50 points lower at 8,775.
The Nifty50 failed to cross the previous day’s high of 8,824 and negated the formation of higher lows of the last three sessions. The index has now to close above 8,820 for the upside momentum to continue.
“The Nifty50 formed a `Bearish Belt Hold’ formation on the Japanese candlestick charts with a top that looked like a shaven head. However, traders should not read too much into this narrow 56-point move, which is pretty much a part of the consolidation phase being witnessed by the market ahead of US Fed rate review,“ Mazhar Mohammad, Chief Strategist Technical Research & Trading Advisory, Chartviewindia.in, told ETMarkets.com.
“Based purely on the charts, the technical picture shall get damaged once the Nifty50 trades below the 8,750 level. In such a scenario, a breakdown of the recent low of 8,688 level from where the market staged a rally shall get broken, paving the way for steep cut,“ he said. — Gold Silver Reports