India’s benchmark Nifty has formed an inverted hammer pattern in the daily charts. An inverted hammer is a type of candlestick pattern found after a downtrend and is usually a reversal signal. In today’s session, the index faced stiff resistance around 10755 approx and fell 154 points to make a low of 10602. A sharp rise in volatility was witnessed as India Vix climbed above 18.50. Going forward, if the index trades above tomorrow’s range high it might scale up to 10716 approx.
The Outlook for 20th February 2019
Nifty Daily Chart Levels
Nifty Future opened around 10651 approx today. The index witnessed short covering early on and scaled up to the nearest resistance zone of 10767 approx. Major buying was witnessed in Put options as the index traded below 10740 and India Vix climbed above 18.50 approx. Nifty might witness a bounce back as it has formed an inverted hammer pattern in the daily chart. Going forward, if the index trades above tomorrow’s range high it might scale up to 10716 approx. On the other hand, if Nifty trades below tomorrow’s range low, it will scale down to 10563 approx.
Nifty Hourly Chart Levels
In the hourly session, Spot Nifty has closed around 10605 approx. The index is likely to face resistance around tomorrow’s hourly range high. If it trades above the range high, it might scale up to 10684 approx. On the other hand, if Nifty trades below, tomorrow’s hourly range low, it might scale down to 10585 approx.
Bank Nifty Options Data