The Nifty opened with a gap down around its 50 EMA and rebounded from Monday’s low to close higher at 10,528.35, up 0.46 percent. The index has formed a ‘Bullish Engulfing’ candlestick pattern. This candle indicates the change in sentiment from a bearish gap down in the morning, to a large bullish real body candle that closes at the highs of the day. It is likely to retest 10,650-10,670 levels on the upside: Inner Trendline which might work as an immediate hurdle zone.

Bank Nifty
Nifty Bank is consolidating within its two major moving averages of 200 and 100 SMA for five consecutive days. It has formed a ‘Bullish Candle’ after multiple bearish reversal candles, thereby negating a bearish set up. Now the Nifty Bank has to cross 25,420 decisively for a further upmove.

If the index fails to cross this level and sustains below it, Nifty Bank may correct till 24,700. On the hourly scale, the index is trading around overbought zone with a negative divergence on RSI.

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