CNX Nifty ended down making a “Bearish Dark Cloud Cover” which is learned as a top reversal pattern.

A dark cloud cover is two day reversal pattern usually characterized by prevailing positive trend while second candle opens higher but ends down as bears  take the lead and plunges market to previous days mid-price range and ends on bearish note suggesting bears strength.

Nifty ended down below 8200 which is seen as a cool-off as market has retraced 38.2 of 8740 to 7921. we may see some more correction while still 8140 is strong support in near term. if nifty breaches 8140 then we may again see downward move while a close above 8240 will make index test higher levels.

PVT and PSU Banks have shown positive change in OI and Prices suggesting positive momentum in coming days. Metals and Auto may see some buying at lower levels as well.