Reigning The Bank Nifty 27th July 2012

Daily Chart 

 

 Half Hourly Chart

Bearish engulfing pattern formed. The Engulfing Bearish pattern is commonly found at market tops and at the beginning of a bearish price decline and is a bearish reversal pattern.

However, a variation of this pattern is called the Last Engulfing Bearish pattern. This variation is commonly found after an extended down trend and represents the bears final attempt to drive the market price lower. If one is short and a Last Engulfing Bearish pattern forms, one should identify a protective stop level near the highs of the Last Engulfing Bearish pattern to protect any profit in the trade. 

Good supports broken on increased volumes.A pullback is due and with the stochastics  in the oversold zone, support taken at the red trendline shown on half hourly chartsand 200 day Ema support at 9999 closeby probability of the pullback accuring is high. Falling channel on half hourly charts have support at 10038-9975.The trend remains down till we see some signs otherwise.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com