Yesterday’s movement on NIFTY, opening high and trading high during the day and losing most of gain during last hour, created Shooting Star pattern, which is another bearish reversal indicator. To confirm the trend it is necessary that the next day the market trades below the closing price of the previous day. It actually happened today.
Edit : (error in the chart description : read 08-07-08 not 08-08-08)
Yesterday , NIFTY closed at 4030, and today it opened lower at 4028 and crashed within few moments to 3896 making the day’s low, and did not trade above 4028. Technically, further significant fall is expected.