I may be sounding biased since last few days but i am still sticking with Sell on Rise strategy on Nifty as i have recommended on the post “Nifty in Reserve” Today to fuel more on my view, we have notice a possible “Dark Cloud Cover” candle stick pattern which is a bearish reversal pattern. Conditions of pattern are 1. First candle should be a long green candle. (Yesterdays open: 7436 and close 7531 which is equal to 95 points) 2. Second candle should open above the previous green candle  ( Todays open was at 7545 which is above yesterdays high of 7539). 3. Red candle should pierce Green candle and atleast close at 50% of the Green candles body. (Yesterday’s body range is 94 points and 50% is 47, so the close should be around 7485). So as you all can note that almost all the conditions of Dark cloud cover has been full-filled if we ignore 1 point above closing than required on index. As exception of pattern suggest that if at all red candle close above 50% body still it can be considered a reversal pattern. Secondly,  looking back at other resistance marks then for the third day today we have resisted near 7544  which is 61.8% fibonacci pull back level of last fall down. Thirdly, We have seen strong writing again on 7500CE, 7600 CE and 7700CE while on the PUT side we have seen much of unwinding suggesting a fear of fall in markets. So my stop loss  strategy is intact as i posted in the morning in “Nifty approaching resistance cluster” . Fingers crossed for ECB meeting tonight and i wish it could give me some sell-off sign.

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