Nifty has formed Bearish one black crow on the daily chart which indicates a reversal may be on the line if we close below 7700. If we are followed by bearish candles then we may see Intermediate trend being changed to bearish side. Today’s negative closing is now confirmation of Nifty trading between a trendline fan range of 7900 – 7700 drawn from low of 7306. Technically Index is following SMA of 13 & 34 Days Fibbo since Aug 2015 and we are still above 34 Days SMA which holds the intermediate trend bullish coupled with trendline support drawn from peaks of 9119.
It is crucial to see these levels of 7700 if sustained in coming sessions as we see a lot of news like DTAA, PSU banks quarterly numbers along with P Notes regulations and lower IIP Data getting absorbed in current trading zone of 200 Points.