Spinning Top Pattern indicates 'Pause' in the rally - GEPL Capital

Nifty Futures closed at 6038 which is 108 points lower than its previous close of 6146. Nifty Futures was not able to surpass the previous day's high of 6174 and intraday fall pushed Nifty below 6000 to form an intraday low at 5950.

On the daily chart, Nifty Futures has rallied from the bottom of 5108 up to the high of 6174 showing 1066 points rally in just 16 trading sessions. On the weekly chart, a 'Spinning Top' pattern is appeared after a steep rally suggesting 'Pause' in the upward momentum.

We expect Nifty Futures to remain in a broad trading range of 300 points between 5800 & 6100 for the current week. Selling pressure is likely if Nifty Futures test 6100 and sharp downtrend may be seen. Whereas, breakdown of 5950 is likely to push Nifty Futures towards the multiple support level of 5800.

Third consecutive positive weekly close is seen with week on week gain of 162 points As long as Nifty Futures trades above 5500 on weekly closing basis, the current intermediate trend will be in upward direction.

The intraday resistance levels for Nifty Futures are placed at 6070 & 6110 where as the intraday support levels are placed at 5970 & 5930 respectively.

Source : Equity Bulls

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