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NIFTY DAILY - DARK CLOUD COVER

Nifty ends in red at 5054 with a loss of  14 odd points.The markets posted a strong bullish gap up opening following strong global cues.Till noon market faced a sideways movement,but suddenly the news of S & P downgrading India struck the markets ,following  came the profit booking,which led the markets to close in red.
The overall market breath  stood positive with 743 advances to 709 declines
                                                                                                                   The markets needed a reason to halt ,also on daily charts the oscillator was running overbought ,hence in spite of gap up opening i  felt that profit booking would occur.In coming days nifty is expected to trade lower,and if there is a negative news-flow,markets likely to test 78.6%retracement level again .The markets made an attempt but failed to sustain above 200 DMA,still managed to remain above short term averages.
               On daily charts nifty as formed a bearish candlestick pattern called dark cloud cover,hence it is expected to cast its dark shadows leading to lower trading range in coming days.Traders suggested to trade cautiously in view of the global turmoil.

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