Mr Mustafa Nadeem, CEO, Epic Research Pvt. Ltd. Epic Research is a leading financial services provider dealing in Equities Derivatives, Commodity, Forex
Nifty on the daily chart ended down making a third inside bar candle as bulls defended the crucial support of 8600 on closing basis.
Nifty ended down for third consecutive day making an inside bar pattern on the chart suggesting a stiff trading range with continuation of primary trading momentum. Inside bar is trading range with bulls and bears trying to make a decisive change in the trend but ends in the trading range. Nifty is also making a NR5 pattern which means narrow range continuation for 5 continuous days and a break out from this gives a thrusting move with higher movement.
As per the OI data, the trading range for nifty comes at 8500 – 8800 on the broader terms with initial support at 8490. In short term support comes at 8550- 8500 which if breached then trend in short term may become bearish while if nifty manages to hold 8500 then we may see stretch towards 8790 – 9000. We continue with our outlook on metals being negative coupled with Pharma and psu banks. Stocks related to paper, Chemical and specialty and auto ancillaries will perform well in coming sessions.