Grave Stone Doji On Dow Jones!

Till the last weekend, our market was reacting to our news and sentiments. The market has started recovery from the bottom and today market has opened a gap down. The reason was the American market i.e. Dow Jones. It has fallen from the lifetime high and closed at day low. However, our market has shown recovery from the bottom and given closing in the green.

Nifty50 Analysis: In the below chart, nifty is trading in a channel and it is descending. On Monday, it has opened above the channel resistance and closed successfully. But we could not consider it as breakout because there was a neutral candle. After today's gap down, the market has tried to cross the resistance but not succeed. Again it has closed below channel resistance, but the plus point is that there is immediate support of 50 DMA.

Dow Jones: On Monday, it has made Grave Stone Doji and closed in the red. This is the reversal signal at a lifetime high and that's why we opened the gap down. That means the American market is overbought and now ready for a pullback. The pullback will drag down to our market. If we see the current candle, then the market has opened gap down and trading with a big red candle. I hope this pullback is enough because it has touched to 20 DMA i.e. support. Now we have to keep eyes on today's closing.

If our market opens with a big gap down, it will be a good opportunity for long stocks with good fundamentals. Friends, keep in mind entry point should be near support and that is important.

 

The global sentiments are negative, so be careful before taking any position.

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.

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