Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 6
Sensex dropped 732.96 points, or 0.98%, to close at 73,878.15, while the Nifty 50 settled 172.35 points, or 0.76%, lower at 22,475.85. Nifty 50 formed a long bear candle on the daily chart, which has engulfed the small range candle of the last few sessions. Also Read: Indian stock market: 8 key things that changed for market over weekend - Gift Nifty, US jobs data to Nasdaq rally “Technically, this pattern could be considered as a bearish engulfing pattern, and this suggests some more weakness ahead.
Nifty on the weekly chart formed a gravestone doji type candle pattern at the new highs. Normally such a doji pattern after a reasonable upside bounce alerts reversal on the downside. Hence, bulls need to be cautious at the highs," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes the short-term trend of Nifty seems to have reversed down. “The higher top of the bullish pattern is likely to have completed on Friday at the swing high of 22,794 levels and the short-term downward correction is expected in the coming sessions. Immediate resistance is at 22,600 and the next downside levels to be watched are around 22,120 levels," Shetti added.
The Nifty 50 index witnessed sharp decline from the all-time highs on May 3 and closed the day lower by 172 points. “The Nifty index is showing signs of near-term bearishness as it forms a double top pattern on the daily chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise approach in the market.
Read more on livemint.com
