Bears were out of control on Dalal Street in the Nifty chart on October 4, 2018. The Nifty50 after powerless opening expanded losses as the day advanced and broke the average crucial support of 10,550 levels intraday. Debilitating rupee and rising oil costs, which both raised dread of extending current record shortfall, spooked markets.
The Nifty50 shed 2.39 percent, or 259 points, to close October 4, 2018 session at 10,599. It had broken below its critical 200-day moving normal comfortable gap down opening, a level that turned out to be the day’s high. The index finished the session shaping a ‘Bearish Belt Hold’ on the daily graphs.
The index ended forcefully lower and made a ‘Bearish Belt Hold’ sort of pattern on the daily candle graphs. If the record definitively broke 10,550 levels on closing premise at that point additionally offering weight can’t be precluded, specialists said.
Its prompt help is at 10,550, which is probably not going to hold for long in the Nifty chart, said Nagaraj Shetti of HDFC Securities. For the day, the 50-pack list settled 259 points, or 2.39 percent, down at 10,599.
“Nifty has broken its 50 percent retracement of 10,850 and 61.80 percent retracement of 10,650 of the entire upswing from 9,952 to 11,760. It also slipped below its rising trend line on the weekly scale by connecting the swing lows of 7,893, 9,952 and 10, 850,” said Chandan Taparia of Motilal Oswal Securities.
A ‘Bearish Belt Hold’ pattern is framed when the opening cost turns into the most noteworthy purpose of the exchanging day (intraday high) and the record decreases all through the trading day compensating for the extensive body. The candle will either have a little or no upper shadow and a little lower shadow.
“This kind of faster retracement on the downside, which took only 24 sessions, confirms the fact that the market is in a strong downtrend. Once this low of 10,550 is decisively breached, the next logical support can be expected at 10,300 levels,” said Mazhar Mohammad of Chartviewindia.in.
“The Nifty index slipped below its rising trend line on a weekly scale by connecting swing lows of 7,893, 9,952 and 10,850 zones. It witnessed sustain selling pressure for the entire session and formed a Bearish Belt Hold candle on a daily scale,” Chandan Taparia, Associate Vice President/Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.
An end at October 4, 2018, low of 10,550 in the Nifty chart may trigger a restorative wave upmove ‘B’ inside the corrective wave structure A, B, and C, said Aditya Agarwala, Technical Analyst, YES Securities, according to the report of Economic Times.
The post Nifty Chart View: The Index Closes Sharply Lower And Makes ‘Bearish Belt Hold’ appeared first on OWLT Market.
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