Technicals: Nifty forms bearish ‘Harami’ pattern on daily chart

By: | Updated: July 29, 2016 4:56 PM

Nifty has formed a bearish Harami in daily chart while a strong bullish candle on daily chart which may attract buying interest on any meaningful decline in the market.

bse sensex nse niftyNifty index opened positive but failed to cross its previous day’s high of 8674.70 and traded inside the trading range of last session. (Reuters photo)

Nifty index opened positive but failed to cross its previous day’s high of 8674.70 and traded inside the trading range of last session. It formed a Bearish Harami pattern on daily chart near to its 52 week high levels. It traded in the negative territory for most part of the day but managed to hold support of 8,625 mark.

Now if the 50-share index manages to hold above 8,650-8,665 levels then it may head towards 8,750-8,777 zones while a slip below 8,625 may attract a profit booking declined towards immediate support of 8,550 and 8,510 zones.

Overall trend is intact to positive as it has been making higher top – higher bottom and supports are gradually shifting high by crossing all previous yearly hurdles.

Index has formed a Bearish Harami in daily chart while a strong bullish candle on daily chart which may attract buying interest on any meaningful decline in the market.

On the option front, maximum Put open interest (OI) is at 8,500 followed by 8,000 strike while maximum Call OI is at 9,000 followed by 8,800 strike. OI concentration indicates for major support at 8,500 while immediate hurdle near to 8,800 zones.

INDIA VIX fell down by 1.53 per cent at 14.92 mark, falling volatility is continuously supporting the broader market and momentum.

Bank Nifty has been flirting with 19,000 zones and failed hold the same on last session of the month and corrected towards 18,900 zones. Now it has to hold the same with follow up buying action to head towards 19,250-19,300 then 19,500 zones while supports are intact at 18,750 then 18,500 zones.

(The author is derivatives analyst, equity research at Anand Rathi Financial Services)

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