All gain of last three days wiped off today following Fed Meeting outcome. Slipped more than one per cent & closed near 18400... A long bearish candle on daily chart took support at 18350... Indicating more fall if it breaks 18300 level. The Fed rate hike of 50 bps was as expected, but signalling more rate hikes going ahead caused selling pressure across global counterparts. Indian browses can't be separated from global environment. If we look at three days' performance, then the index seems to have formed an Evening Star kind of pattern on the daily charts, which is a bearish reversal pattern generally getting formed in an uptrend. Nifty was near to ATH, but today, all dreams of bulls spoiled. Not only that, trend became bearish as of now.
Nifty chart witnessed lower highs with closing below 20-DMA (18,576) with a big red bar which is a bearish sign, however 18,325-18,250 is an immediate support zone that bulls will try to protect. 18,100 and 18,000 will be the next important support levels. 20 DMA will act as resistance. Option data indicates nifty range would be 18300-700. For bull run it has to be closed above 20 DMA. Max put writing at 18000, which is a good support, below that free fall expected. India vix was up and settled at 13.73.. From 20-22 December, activities of FIIIs will be slow due to Christmas.
Bank nifty formed the same bearish candle like nifty formed a evening star pattern indicating more weakness. 43250-43000 should be intact to move further. During this fall, good stocks should be accumuled. All sectorial indices were ended in red. Select stock from different sectors and do SIP for wealth creation. Nothing bad, up - down phase will give us an opportunity to create wealth.
Siging off for the day 💐