Nifty's long-term trend still on downside
The only positive factor is that the last bar closed above the prior bar high
The benchmark indices were closed negative for the second day as the profit booking continued. Nifty was down by 61.80 points or 0.37 per cent and closed at 16522.75. Bank Nifty rose 465 points in the last 40 minutes has resulted in the benchmark recovery.
At the end of the day, the Bank Nifty is up by 133.40 points or 0.38 per cent. The Nifty IT, Pharma and Realty indices dragged the market with over one per cent losses. FMCG, Energy and the Media indices were also declined by 0.7 per cent. The broader market indices, Nifty Midcap-100 and Smallcap-100 indices, closed with flat to positive gains.
The VIX is up by 1.79 per cent. Out of Nifty 50 stocks, 37 closed in the negative zone. The broader market breadth is positive as 1114 advances and 949 declines. About 28 stocks hit a new 52 week high, and 117 stocks traded in the lower circuit. Infosys, Reliance and Tata Steel were the top trading counters today on value terms.
On a highly volatile day, the Nifty traded over 200 points range and finally formed a long-legged, small body candle. It formed lower low and lower high candles. The previous day's Doji candle got the confirmation for bearish confirmation. At the same time, it also got the downside confirmation for an inside bar. In the last 40 minutes, a sudden sharp recovery has led by some of the banking stocks. Otherwise, the index breadth is negative.
On a 75 minutes chart, it broke the box range on an intra-day basis but closed exactly at the previous day's low. The only positive factor is that the last bar closed above the prior bar high.
The last two days' price action is not giving any strength to the bulls. As stated on Tuesday, the price action is looking southwards. If the Nifty closes above the 16650-756 zone, it is better to be with a negative bias. Like today, sharp and sudden rallies may come often. These are all counter-trend within the minor trend. The long-term trend is still downside.
The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)
