A shooting Star pattern is observed on Daily chart of Nifty. A shooting star is a bearish reversal pattern usually seen on key reversal points or peaks. A shooting star usually forms in an uptrend while the closing is on the negative basis. Its upper shadow is twice as big as the body indicating bulls tried to stretch the momentum but failed to keep the markets in higher. The low and close of the shooting star pattern is almost same which further indicates the strong selling pressure and stronghold of bears.
20 Days MA at 10310 marks did provide some support while the pattern indicates it may be taken out in coming sessions. BankNifty also saw a profit booking since major contribution in the current rally was by PSU banks. We expect the market to be in range with 10200 on the downside while 10350 on the upside. A break of this will give us the necessary momentum in near term.
We suggest being cautious and have a Buy on dips strategy with trailing stop losses around our area of support, 10200
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