The unabated selling pressure continued as Nifty extended its losing streak to the sixth consecutive session.
Friday’s fall was brutal and Nifty indeed closed below its long term 200-DEMA of 10,750-levels; however, there were early signs that the selling pressure is most likely getting exhausted.
Nifty formed a Hammer pattern on the daily chart after finding support around the rising trendline and the immediate low of the 10,580 hit on January 29, 2019.
Going forward, a close above 10,785-levels would confirm that the reversal is on the cards and Nifty is then expected to move higher towards the 10,900-resistance zone.
Bank Nifty, on the other hand, is yet to break down from the rising trendline support zone of 26,700-levels.
Currently, the index is comfortably trading above its 200-DEMA of 26,450, which is the crucial support area. On the upside, 27,300 is an important resistance area.
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