A Bearish Engulfing pattern on the Nifty Daily Charts

Nifty opened with a gapup of more than 90 pts but immediately faced selling pressure making a low @ 25055 within the first half hour of the day and thereafter it traded within this range before closing @ 25104 for the day clocking gains of 1pt only. Top Nifty Gainers: $GRASIM , $TECHM , DRREDDY Top Nifty Losers: TRENT, MARUTI, BAJAJ FINANCE The India VIX cooled down significantly to close @ 14 levels, down by 4.5% for the day. Range for the Day – 144 pts. Weekly Options Data (Considering Strikes which are within 1500 pts above and below Spot price): Highest Call Base 26000 Highest Call OI Addn 25200 Highest Call OI Unwinding 24800 Highest Put Base 24000 Highest Put OI Addn 25100 Highest Put OI Unwinding --- MAX PAIN 25050 The ATM strike (25100) has a combined (put + call) premium of 178 pts. This is close to par considering we have 2 trading days to go till expiry. View: Nifty continues to trade within a broad 600 pt range with 24500 on the downside and 25100 on the upside. 25100 – 25250 is a strong supply zone for the Nifty. If Nifty manages to break past this zone, then a trending move towards its previous highs at 26275 is likely. However, today Nifty formed a Bearish Engulfing pattern as today’s candle body fully engulfed yesterday’s candle body. This pattern being closer to the Resistance zone of 25100-25250, might signify a trend reversal for the short term if Nifty sustains below 25000 levels. Only a move above 25270 levels would negate this bearish formation in the Daily candlestick charts.