Are you long on Nifty? Index breaks out from falling channel pattern

India Infoline News Service | Mumbai | September 16, 2018 08:30 IST

We expect the positive momentum to extend up until 11,600-levels, which is the top of the right shoulder of the entire head and shoulder pattern.

Wednesday's hammer candlestick pattern formation turned out to be an important development for Friday’s strong up move as the hammer's top was surpassed with a gap up. Furthermore, Nifty has also broken out from a falling channel pattern and passed the 11,500-mark on the smaller time frame chart, which is a positive development.

Going forward, we expect the positive momentum to extend up until 11,600-levels, which is the top of the right shoulder of the entire head and shoulder pattern. On the downside, 11,400 is likely to act as a crucial support.

Bank Nifty, on the other hand, surged higher too, thanks to a swift recovery that was seen in the private banking space. Going ahead, 27,000-27,050 zone is likely to act as a crucial support for the index.

On the upside, 27,600-27,650 will act as the immediate resistance zone for Bank Nifty.
 

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