Midcaps in demand, on the verge of inverse head & shoulder breakout

Nifty which piled up losses in the past two weeks saw some relief reclaiming the psychological 11000 mark. The weekly chart analysis indicates that Nifty has formed a Doji pattern which suggests recovery may be on the cards. 

 

Going forward, the current momentum is likely to get extended once Nifty surpasses the Doji pattern high of 11140 levels. In addition, the long term 200-DMA of 11200 is also going to be an important resistance zone for the Nifty in the near term. On the downside, 10850-10900 is an important support area.

Bank Nifty too formed a Doji pattern after falling sharply in the previous two weeks. The index found support around its February 2019 lows of 26700 zone creating a Double bottom kind of a formation. 

Going forward, the fresh upswing is likely to begin once the index manages to surpass the Doji pattern high of 28250 mark. On the downside, 26800 is the crucial support area for the Bank Nifty index.

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