Bearish engulfing pattern indicates further weakness for Nifty
Bank Nifty too has broken down from a head and shoulder pattern on the smaller time frame chart.
Smaller time frame chart analysis indicates, Nifty has broken down from Head and Shoulder pattern. Projections of the breakdown suggest that Nifty is likely to decline towards its potential target of 10,500 levels.
The entire bearish structure is likely to get negated only if Nifty surpass the 10,800 mark once again on closing basis.
Apart from this, weekly chart indicates Nifty has formed a Bearish Engulfing pattern too further suggesting weakness.
Bank Nifty too has broken down from a head and shoulder pattern on the smaller time frame chart. A break below the 26,000 mark has confirmed the same. Immediate support for Bank Nifty is now placed around the 25,800 levels which is also the 21-DEMA.