Nifty 50, on weekly basis, has formed a perfect bearish engulfing pattern.
Observations:
1 Previous trend- Uptrend
2 Open on week two is higher than week one close.
3 Close on week two is lower than week one open price.
4 Strong sell on week two indicates bears may have broken down bulls stronghold.
Asian Paints is the dominant leader in the lucrative decorative paints industry. Looking at its chart pattern, good support and resistance has occurred forming triangle pattern. Good volume and PAT growth implies good future. Good support at 2430-2440. Average or buy at CMP.
ITC is one of the finest stock in equity markets. Triangle pattern breakdown was occurred at 204-205 on 07/01/2021 which shows the opportunity to short, BUT on 12/01/2021, spinning top candlestick has occurred which indicates uncertainty in price action.
ADVICE: Average up/down by buying half at high/low and buying other half at low/high.
