On daily nifty formed 3 doji's ( marked with black line ) with higher high's , lower low.
Following 3 doji's - nifty opened lower and closed near its low, and formed long bearish candle
engulfing prior 2 doji's.
Since, its a long bearish candle, we might expect a retrace of about .382 [ 11483 ] or .50 [ 11500 ] of the candle, the following day. ( however not necessary it would retrace - we plot retracement for keeping SL ( Trailing stop loss ) in case of holding short positions )
Following bearish candle, index opened little higher @ 11476 ( pro gap- filled the gap at the opening itself ) and headed lower and, formed another long bearish candle closed near its low @ 11287.50
So now the index has two consecutive long bearish candle - Probability are that it may form three bearish crows pattern , hence tomorrow we may expect another bearish session.
There is also a Head & Shoulder Pattern visible on the Daily chart and in today's session neckline is broken decisively .
We may keep our short positions open or may partially book profits and trail the stop loss to today's candle .382 retracement i.e 11355 or .50@11383
Intraday charts are oversold, so keep an eye on price action , if it is to witness any pullback to the neckline.{ 11420-11427}
Head & Shoulder target is at 11027.
