Nifty - Correction On The Cards

Nifty (CMP: 6237.05) - The action formed a strong negative candle with high volume which signifies bulls are loosing their momentum & bears are in active. Technically, the index has given trend line breakdown with negative candle as well as on the hourly chart index is forming lower top lower bottom set-up which indicates correction on the cards. Now the Index is heading towards 6200 – 6140 – 6100 levels which is cluster support. On the Elliott wave perspective “Irregular Flat” pattern is progress & it could end at 6100 – 6050 level. Index is trading below 20 & 40 hourly EMA i.e. 6283 & 6277 respectively. The daily & hourly oscillator has given negative crossover, which signs that continuation of bearishness.

Banking, Auto and Metal segment looks weak & we could expect for further weakness. Bank Nifty support is placed at 11650 - 11450. Resistance is placed at 11750 – 11870. Overall, bearish trend is progress. Unless violation of 6300 the index could fall towards 6200 – 6140 - 6100 levels. Fresh traders can sell at CMP with a stop loss of 6300 for the minimum target of 6150 – 6140.