Nifty 50 as the benchmark Indian stock market index, now showing a new trend called Gravestone Doji. It means a bearish pattern showing a reversal downtrend in the stock price. It is a sign to take profits on a bearish trade. Last Monday there was a critical situation arises due to the closing basis of the market. It closes at the level of 10,250 but the Intra trade profit booking was more than 11,341. The index showing a bearish candle in the chart. The exact chart showing an indecisive Gravestone Doji.
Compared to the previous swing high, Nifty50 is sitting just below it, which acted as a natural barrier to rising prices. To beat the recent highs, it needs to go above the resistance level at 11350. As the barrier is at 78.6 percent retracement level, it is significant. When the momentum oscillators were calculated the results showed no weakness, nor the lower timeframe charts showed any such indication. Also, the moving average shows the trend to be intact and the RSI or the relative strength index remains above 60, according to Analyst Manish Shah.
Financial analysts said that there was support for the index nowadays it always moving higher, but the confidence level in the market was missing at a large level. When considering the internal strength of the stock market which was measured by the RSI indicator. If the value was above 70 were considered an overbought situation and below 30 shows an oversold situation.
RSI was in the overbought level by cooled off and suggesting an upside trend in the coming sessions. Adithya Agarwala claimed that to clear the index recent pivot rate by extending its grains from 11,340 to the 11,378-11,465 zone. Considering the current scenario of Nifty 50 it was closed at 11,274 and at the same time it hit a high of 11,337 during the session.
Analysts Mazhar Muhammad of Chartviewindia.in have an opinion that the four consecutive days in a row forming indecisive candles which show a pattern at times which leads to a sudden selloff in the market. He also added that the intraday selloff with initial targets was 11,140 if the index falls to hold above 11,238 level then it leads to a selloff the share at the initial target. Chandan Tapria from Motilal Oswal Securities said that the stock market shows a bullish trend after making a higher decrease by considering the last five sessions.
He added that from 11,150 and 11,100 which indicates a downside supports. From the technical view of nifty 50 shows a signal of indecisiveness. Due to some uncertainties so stakeholders lack confidence in the market as a result of this Nifty forms a Gravestone Doji pattern.
