Nifty50 Snaps 7-Day Winning Streak, Experts Warn of Possible Short-Term Top Reversal
Nifty50 saw a minor reversal on Tuesday after climbing to 20,110 levels in the opening. The index snapped a seven-day winning streak and closed with 3 points loss at 19,993, forming a bearish candlestick pattern.
Experts said that a decline below 19,850 levels could confirm a short-term top reversal pattern for the market. Any upside rally from here could find strong resistance around 20,100 levels.
Bank Nifty also saw profit-taking after climbing near 45,900, and closed with 59 points loss at 45,511. The index has formed a bearish candlestick pattern with a minor lower shadow on the daily scale.
Experts believe that there could be a consolidation in the range of 45,800 – 45,000 from a short-term perspective.
The broader markets have seen significant correction on Tuesday after a robust rally, with the Nifty Midcap 100 and Smallcap 100 indices falling 3 percent and 4 percent respectively on weak breadth. About nine shares declined for every rising share on the NSE.
India VIX, which measures the expected volatility for the next 30 days in the Nifty, touched a 12 mark intraday, and settled at 11.69 levels, increasing by 3 percent from 10.71 levels.
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