Nifty Update for June 22 - Inder Bhatia

Last week sensex lost 4.7 percent and the Nifty closed down 5.9 percent respectively. Last week we had mentioned about a rising wedge and long-legged doji combination. Since then we have seen a good reversal from the upside and the Nifty has reached our level of 4249-4189. Nifty bounced from 4202 zone and closed around 4313.

Daily: We are forming a Head and shoulder pattern that is another bearish and strong reversal pattern on top. The pattern is still in the process of formation. If current Nifty goes around 4370-4456-4504 level and cracks the neckline we could see a lower target around 3865-3700. We have seen Reliance Industries had fill post-election gap around 1976.

We can expect the same for the Nifty which could come down around 4000-3795 to fill the gap sooner or later.

BUY BANKINDIA 339 TGT 347>355 Stoploss 333.

SELL IBREAL below 183.50 TGT 165>145 Stoploss 200.50.

Last week we had mentioned that any major rally will correct before its next upmove . We have so far seen just 20 percent retracement. The 23 percent (4151 level); 38 percent (3850) and 50 percent (3592) is shown in the chart.

The Indian market opened on a higher note tracking positive cues but saw a choppy session up and down to close with handsome gains. On the hourly chart we could see some bounces around 4371-4434. On the downside 4240-4189 acts as a support zone while breaking below 4189 more selling could be seen.