Decline once again, lower levels likely.

The Nifty closed at 2686.05, down 69.05 points, lower by -2.51%.
An outside day is made today. This pattern was made at the top of a minor rally. It is likely to be a reversal pattern. Coming days should see a decline in prices.

NIFTY Patterns

The minor rally in the Nifty saw a move that came close to 2900 resistance (today’s high was 2832). As expected, the 2900 zone did act as resistance, with the Nifty giving up all the gains made in the last 2 days.

The small rally in the Index looks more like a rising wedge / rising flag. Such patterns come half way in a trend. The down move was 600 points, from 3200 to 2600. A breakdown at 2700 now gives us a target of 2100 approx. Targets are just that, estimates of what may happen. They do not assure any outcome. But we do get a roadmap.

What can go wrong ? If the Nifty were to close above 2900 we will have to look at the scenario once again. Till then, we assume the down trend is intact.