Nifty continued its Friday fall, as it was expected and discussed today morning, by closing at 8448 spot levels, down by over 150 points. Please also note that the indice has potentially formed a Head and Shoulder reversal pattern on the daily and weekly chart view, with its right shoulder around 8800/30 spot levels. Believe it or not, a drop into 8000 and subsequently 7800 spot levels should not be ruled out. It is recommended to bring stop loss to break even levels if possible and continue holding short positions. Nifty rallies should be sold for now, and a deeper correction has been materializing well as it was discussed.
USDINR on the other hand has achieved the initial target of 62.80/85 spot levels. The next upside potential is 63.10 and higher levels. The pair may reach 64.00/65.00 levels in near future before producing a meaningful retracement. It is recommended to hold long positions and also look to add further during intraday dips. The pair seems to have broken out of consolidation, hence the remaining upside should be extremely fast and any dips should be considered as buying opportunities. Support remains at 62.00 and 61.30/50 levels while resistance remains at 63.10 levels.
All indices were in the RED today with Bank Nifty at -1.27%, Auto at -1.86%, Energy at -2.73%, Finance at -1.50, FMCG at -2.87% and IT at -2.04%.
Have A Great Day Ahead!