index is likely to remain volatile in the coming week and the pattern will be confirmed if Nifty closes in red on Monday as well. After such a steep decline there is a higher possibility of Nifty forming a base around its 200-DEMA
Nifty started on a positive note but failed to keep the momentum going, shedding all gains to close in the red. The only respite was that it closed above its crucial 200-day exponential moving average (DEMA).The index formed a bearish candle on the daily charts but made a Bearish Belt Hold kind of pattern on the weekly charts which suggest that the pain may not be over.A ‘Bearish Belt Hold pattern is formed when the opening price for the week becomes the highest point of the week and the index declines throughout the trading week making up for the large body. The candle will either have a small or no upper shadow and small lower shadow. the index opened at 10,271 and rose marginally to hit an intraday high of 10,296. But bears soon took control and pushed the index towards 10,200 to hit an intraday low of 10,211. It closed 15 points lower at 10,226.85.