Nifty charts had formed continuous Hammer Patterns on the chart.
Hammer candlesticks are formed when a security moves significantly lower but bulls retraced back from those lows to reach near the open. By day end buyers were able to push prices back to the upper range creating a short body candle with a long shadow. The Hammer pattern signifies a weakening in bearish sentiment.
Resistance on Pull back would be arrested around each major medium to short term moving averages and as of now the values are around
• 150DMA : 5080
• 100DMA : 5110
• 50DMA : 5200
Fibonacci level of 61% retracement level at 4950 which coincidentally is 200 SMA should act as support.If that’s breaks than 4800 should act as support which is Long term Support
Relative Strength Index and Stochastic oscillator is giving up optimistic signal showing up some oversold criterion which might invite fresh buying opportunities.
The candle pattern on the weekly chart for the week is Black Opening Marubozu indicating Bearish authentic supremacy for the whole week.
For the upcoming week if Nifty sustains above the crucial 5000-5050 levels then it is likely to test 5180- 5213-5300 levels. If bulls failed in doing so and falls below 4940 levels then it might soon test 4850-4800 levels.