has seen a sharp correction from near 5000 level to below 2000 level and then went into consolidation mode. All this fall and consolidation have leave to emergence of pennant
on daily chart
is trading below 0 line but positive crossover has been witnessed. on upside level 2320 and 2650 would be the resistance level
. Close past 2320 would negate Pennant
formation and close below 2030 or recent low of 1970 would clear signal for continue of bearish
momentum based on pattern. Target of pattern is 900 points but for simplicity reason we would focus on % correction below the breakout level, which is 1430 (30% below breakout level). Reason for the next could be SL of alogrithm based on Mean Reversion as market has not touched 20 day moving average even after 1 month. Value buyers could also emerge considering old ROE,ROCE, Interest coverage ratio. Trader should attempt Buy only on close above 2320 with SL of 2150 for target 2650 -3200 OR sell only on close below 2000 for target of 1780-1500 with SL above 2180.
Range Trader can look for 2040-2300 range.