Market Update
Harsh Patel
Founder
Double Top Breakdown in Nifty after Rising Wedge breakdown? Read to find out where is market heading.
Nifty Daily Chart
Support levels: 25450 Resistance levels: 25700-25900
After Rising Wedge Breakdown below 25900, Nifty confirmed Double Top breakdown by closing below 25700, These reversal patterns are seen at the end of Up trend and should not be taken lightly as its impact is not limited to the theoretical target that is seen at 25000 for Nifty, but it may result in selling in the broader market, resulting high beta stocks underperforming broader indices and selloffs in overbought and expensive counters without ant patterns or breakdowns on chart which may caught investors off guard.
Support for Nifty is seen at 25000 levels, while resistance it at 25700 level, Nifty may trade range bound today between 25450-25700 considering oversold level for the weekly expiry.
Below 25700, probability liquidation risk in the market up to 25000 remains elevated at this point due to current global risk scenarios, any bounces in Nifty to 25700-25800 may get sold off, also one should not buy looking only at the oversold RSI.
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