Bears Control Market, Nifty Inside Day Candle Trade Cautiously Tomorrow.

The Nifty formed an inside day pattern on its daily chart, which is formed when the price trades within the high and low range of the previous day. Therefore, it is necessary to wait and watch until the high (25,134) or low (24,979) of today’s daily candle is broken, one must wait for further direction on the Nifty. At the current juncture, the bear market participants betting on a decline are in full control of the markets and are using every pullback rally to create short positions. Nifty is now at 24,950 – 25,000 and 24,750, on the highs side immediate resistance is at 25,100 levels. The index remained largely sideways throughout the day as the 25,000 level was mostly held. On the lower end, support is placed at 24,950 – 24,900. A fall below 24,900 could trigger a correction toward 24,750- 24,700. On the other hand, resistance is seen at 25,150, and any move above this level could push the index toward 25,350-24,400 in the short term. On daily charts, we can see that the Nifty is in the process of retracing the 1500-point fall. The index formed a small red candle, indicating selling pressure at higher levels. However, the index still holds above the low of the inside bar candle. Thus, as long as the index holds above 24,690, levels of 25,150- 25,350 could be possible. However, momentum indicators hint towards a fall in the index. Options writer’s data showed a short covering of 25,300 puts. Nifty formed an insider candle, indicating the rally during the day was sold off. Technically on the daily charts, the index formed a small red candle, indicating selling pressure at higher levels.