Nifty completed Ending diagonal pattern yesterday and immediately taken U turn from all time High 13145.85. As we know that After an Ending Diagonal pattern there would be swift reversal , exactly that's what happened yesterday.
Surprisingly, all major sectoral indices breached crucial supports at closing time and closed below it.
This is indicating that, for the time being, nifty entered into correction phase.
Immediate down side targets for nifty would be 12760 and then 12530.
Resistance remained at 13145.
US Dowjones too formed similar pattern yesterday. It seems that, global market too getting inline for correction phase. Be alert on holding long positions.
Any close below 12600 would drag nifty to more downside.
Its better to book long positions at least partial profit booking.
As today fno Settlement, we can see more volatility or panic moves in market.
trade with strict stoploss.
regards,
Suryadev Bandari
Research Analyst
www.earningwave.com
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