In the short run, Nifty index formed a ‘Shooting Star’ kind of candlestick pattern on Thursday on the daily charts. This formation is typically observed in an uptrend and is treated as a short-term reversal pattern. However, it would need follow-up selling before it can be concluded that the trend will get reversed in the near-term.
The short-term trend is likely to get reversed only after Nifty trades below the Shooting Star’s low of 10,999, which is also a crucial support, while resistance is around 11,100-mark.
Bank Nifty, on the other hand, too saw some cooling off and failed to close above its Karnataka elections' high of 27,058, which is the resistance, while the support is at 26,870-levels.
For the current momentum to get extended, Bank Nifty has to close above the 27,150 zone convincingly.