Near term Nifty support lies at 4900: Edelweiss

MUMBAI: According to Edelweiss, the overall the Nifty pattern looks bearish. It sees the Nifty near term support at 4900.

“The Nifty candlestick formed big red candlestick with a falling window intact. Daily candlestick also formed a very long lower shadow depicted demand at lower levels. The overall pattern is now bearish and likely to face stiff resistance around 5005. Near term support lies at 4900 while immediate resistance would be faced at 4980. Close below 4900 would open up further downside till 4700.

The Oscillators on the daily chart remained in bearish mode with RSI, Stochastic and ROC depicting crossover. ADX started showing upward slope and depicting a possible shift to a trending market, and +DI has crossed below -DI depicting bearishness,” the report said.