So the touch of the 200 DMA did not happen today…But it is still in play as long as the market is below 100 DMA at 5015 and does not close above it.
What I wanted to bring to your attention today is the Bear Flag I have been watching on the Nifty for the past several days.
The market conclusively broke out of the flag on the 5th and is now heading for a retest at 4860-4875 levels.
The pole at 5300 and the flag retest at 4875 levels, give this bear flag a reward of 425 points, which should put this market at 4450, should the pattern work-out.
Entry : At 4860- 4875.
Stop Loss : 4900
Target : 4450 or 425 points from the flag end.
Time frame : 15 sessions from touch of 4875.
Pit falls : We have the 200 DMA at 4650 which should produce a bounce.Also seasonality wise, we are entering the budget build-up sessions which are known to be bullish.