Nifty cracks sharply; FMCG index breaks down from Symmetrical Triangle pattern

Going forward, the 11,220 zone is an important support, which is also the rising trendline support on the weekly chart.

Jul 21, 2019 04:07 IST India Infoline News Service

Nifty advanced during the week to 11,700 level, however, failed to hold on to the same, as traders turned indecisive at higher levels. A spinning top formation on Wednesday followed by a breach of crucial 11,650 support led to aggressive selling pressure. This led the Nifty to fill the Exit Poll gap, which was created on May 24, 2019. Going forward, the 11,220 zone is an important support, which is also the rising trendline support on the weekly chart.

Bank Nifty too slipped sharply and cracked below the 100-DMA of 29980 levels on the daily chart. The index has entered into the lower top lower bottom structure on the daily chart, which indicates that weakness may persist going forward.

Nifty FMCG index has witnessed a fresh breakdown from a larger Symmetrical Triangle pattern on the weekly chart. This indicates that further selling pressure may get extended.

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