Nifty closed flat today with the formation of the Doji pattern on the chart, which indicates indicision. The support lies at 8250 where as resistance is still at the level of 8400. On the intraday chart of Nifty, we see that the intraday movement was very volatile, with both sharp upside and sharp downside movements on the chart.
The bearish sentiment witnessed yesterday has partly subsided today and for tomorrow, if today’s high is breached then we can expect that nifty will resume the previous rally.
Bank nifty has been consolidating in a very narrow range of 17985-18150 which are currently the resistance and support levels. The index is also in the middle of an upside sloping channel and if the three day consolidation is breached on either side then we can expect the index to continue in that direction. The RSI of banknifty is suggesting bullish momentum underlying its recent weakness.
Nifty IT is currently very weak as it lost 1.8% lower than yesterday.. It had formed a long red marubozu candle,and the support is at the level of 10865 which is shown by the support line on the chart. Some bounce back maybe expected at this level .
Among the other NSE indices, the Nifty IT and Nifty Midcap indices were the biggest losers, which was a new thing as the Midcaps were leading since the past 7-10 trading sessions, but the tides changed today and the Bank Nifty lead among the indices with Nifty 50 right behind.