: The index is on the verge of forming a 'Head and Shoulder' pattern, which suggests traders should remain cautious for the coming sessions. A breakdown will harm the sentiment further, which is already deteriorating. No doubt that 11,800 stays as strong support on a closing basis and a continuous close below the same may lead to 11,550 to 11,500 levels. CLICK HERE FOR DETAILED CHART VIEW
As of now, a rise in the index has been used for squaring longs and shorting stocks. The medium-term support of 11,550 – 11,500 should act as a range for a bounce. Having considered that, the speed at which the index should have risen upward has slowed down to a great extent. Given the major daily moving averages, 50 DMA, 100 DMA and 200 DMA, along with RSI that is trending around 60 levels and the MACD which is trading above zero line – the index is strongly resisting a close above the 12,000 mark.