Nifty spot the benchmark Index opened gap up by 55 points at 10179. The index in the first two hours of the trading session showed resilience on the top side but as it came to the levels of 10230, the index started taking resistance. The index then went on to make a new low of 10133.70 for the day and closed at 10155 which is just 30 points above the previous day close.
Nifty in the daily time frame of the chart has formed a Falling wedge pattern. This is a bullish pattern but this pattern also suggests that the movement of the index will slowdown and volatility will also calm down.
Nifty’s weekly time frame of the chart has shown seven continuous red candles from the high of 11172 (52_week High). The index for the first time in a year has shown a correction of 1094 points within two months. It’s difficult to say that this is the end of the correction but according to our Strategic Technical Levels if the volatility of the index slows down and it stays in range for two weeks then we could see a new being for an upside move for the financial year 2018-19.