Bulls back into hesitant mode
Nifty got off to a flying start and soon crossed the sturdy wall of resistance, which was placed in the region of 14,880-14,900.
As the day progressed, the lead got extended and Nifty reached within a striking distance of reclaiming its milestone level of 15,000. However, just when things looked extremely rosy, all of a sudden, a tremor of volatility was witnessed in the penultimate hour and Nifty trimmed almost 150 points from its highest point of the day. However, a modest recovery, in the end, helped the indices to end with modest gains of 0.37 per cent.
The price action of the day has formed a Doji candlestick pattern as the closing was near its opening level. However, the formation of higher high & higher low continued for the third straight day. Having said, the price action has given a hint about caution as a trend day turned into an indecisive bar amid a sharp sell-off in the latter part of the session. Moreover, with price moving above the 14,880-14,900 level, on the lower timeframe, Nifty witnessed a breakout of two patterns. One was of inverted head & shoulders pattern while the other was an ascending triangle pattern. However, after breaking out, the price soon returned to its geometric pattern. Going ahead, the level of 14,770 is an important support and a decisive move below this level would open gates for a deeper correction towards the levels of 14,600 in the near term. On the other hand, a close above the 14,880-14,900 mark would open gates for 15,150 levels in the near term.