On technical charts Nifty index is forming a ‘Head & Shoulder ‘pattern. However Nifty traders need to be careful before taking any position as on Friday a ‘Spinning Candle’ has been formed which indicates a swing movement between 4700 and 5100 during the week so watch for 4919-4841.
The Sensex technical indicators are looking bearish. The MACD is above the signal line, but is in negative territory. The ROC has started moving down and is about to cross below its 10 day MA into the negative zone. The RSI failed to climb above its 50% level, and has started to move down. The slow stochastic has dropped from its overbought zone.
The Nifty technical indicators are also bearish. The MACD is entangled with its signal line in the negative zone. The ROC has dropped below its 10 week MA into negative territory. The RSI has slipped below its 50% level. The slow stochastic is above its oversold zone.
Conclusion: The Sensex and the Nifty index chart patterns are slowly sliding down within their downward falling channels. Cash preservation should be on focus.
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