NIFTY Index Chart Analysis

GETTING INTO A CORRECTION MODE

The Nifty has given clear signs of weakness since the last weekend by forming bearish patterns and closing below the key support. As mentioned earlier, the index behaviour around the crucial level of 18,000 is important to watch. The frontline index formed bearish engulfing pattern last Friday and got confirmation for its implications on Monday as the follow-up bar was a bearish one which carried lower high and lower low formation. Meanwhile, on the weekly chart, it formed a shooting star and got confirmation by opening below last week’s close. The formation of these bearish patterns is important because they formed a key resistance level with added distribution days.