Market Update – All About Today’s Market
Today, the Nifty50 tumbled over 1 per cent and in the process formed a solid bearish candle on the daily chart. Analysts use technical analysis and candlestick patterns to anticipate the price movements. Candle stick patterns are most commonly used by many traders. Some of the important candle stick patterns are doji pattern, engulfing pattern, inverted hammer and many more. The doji pattern and engulfing patterns are representatives of trend reversal. The bullish engulfing and bearish engulfing are the two different types of engulfing patterns. These candlestick patterns are extensively used to generate intraday trading tips for stock market.
The index formed lower high and lower low for the sixth session in a row. Analysts believe unless Nifty50 negates this trend, the market may remain negatively biased in the short term. For now, minor support is seen at 10,396. For the day, the index settled 106.35 points, or 1.01 per cent, lower at 10,430, decisively breaking its 100-day SMA support at 10,470.
Experts also believe that the key support has been broken at the 10,470 level. The outlook for Thursday remains weak. We expect the index to test the low of 10,350, 10,300 levels over the next few sessions. Holding short positions and selling on any intraday rise would be a prudent strategy for the short term