Today Banknifty closed @ 10173.55 with the loss of 3.33%. All banking stocks were closed in red. Today top loser are Union bank and IDBI with loss of 5.48% & 5.01% respectively.
Day range of Banknifty was 10583.75 to 10135.85. Till 1.30 pm Banknifty was hovring near 10500 by 50+/- points but found difficult to sustain above 10500 being a monthly resistance hence given up all the gain. Even yesterday mentioned that weakness will be only below 10345 level and thereafter it was a free fall till todays' Agni level 10138.
Today Banknifty has made bearish Engulfing candle in Daily chart :
(click to enlarge image)
Below 10117 Banknifty may fall upto 10060-9900
BEARISH ENGULFING
Bearish Engulfing Pattern is a large black real body, which engulfs a small white real body. It indicates that the uptrend has lost momentum and the bears may be gaining strength.
A confirmation in the third day is required to be sure that the uptrend has reversed. The confirmation may be in the form of a black candlestick, a large gap down or a lower close on the third day.
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