Nifty charts depict grave for the bulls; analysts say rally is on

68672016 68671871 68671615 NEW DELHI: Nifty50 on Monday formed a Gravestone Doji-like candle on the daily chart. Such a chart near the record high level increases the chances of a possible trend reversal.A Gravestone Doji is formed when the bulls miserably fail to defend intraday gains and the index shuts shop a round the opening and the day’s low levels. The candle represents the gravestones of the bulls.For the day, the index closed at 11,655, up 31.70 points or 0.27 per cent. It hit a high of 11,738 earlier in the day. “Nifty50 appears to have registered a Gravestone Doji, as it shied away from lifetime highs by just 22 points. Such a steep fall from the intraday high level of 11,738 suggested lack of conviction and uncertainty about further gains at higher levels on the part of bulls,” said Mazhar Mohammad of Chartviewindia.in.Mohammad said the oscillators on both daily and weekly charts appear to be overheated and a close below 11,630 can act as a confirmation for the short term.A Gravestone Doji, following Friday’s Dragonfly Doji candle, indicates the bears are becoming active after the sharp rally, said Aditya Agarwala of YES Securities. “A trade below 11,640 can drag Nifty lower to 11,580 level and a close below this support will trigger a breakdown of the channel pattern. On the flip side, a trade above 11,680 will help Nifty resume the uptrend,” Agarwala said.Sameet Chavan of Angel Broking said he would rather interpret the fall as mere profit booking. He maintained positive stance on the market and advised traders against going short. “Such hiccups are normal. It’s advisable not to get carried away by these declines,” he said.

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