Nifty – Gap down & close near rising trend line support

Daily chart

nifty.jpg

This is getting interesting now. We had a gap down opening today on rising long duration bond yields. From India’s view point, what is negative is the rising bond yields in US. The close is near rising trend line support.

If Brainard kills the rate hike talk, we are likely to see a gap up opening tomorrow leading to gap filling exercise.

On the other hand, hawkish Brainard would result in a breach of rising trend line tomorrow.

More interesting is the monthly chart – bearish inverted hammer candle suggests we could go down to 5-MA level of 8517.

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