India Nifty’s ‘Head and Shoulders’ Pattern Signals Further Slump
- Tuesday’s drop broke support, confirming a technical reversal
- Resistance at 21,800 remains critical for any recovery: Bala
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The slump in India’s 50-member Nifty index on Tuesday sent the markets below a key support level, activating a chart formation that could trigger more losses.
The benchmark dropped 1.5% to 21,238.80, reversing early-session gains of 0.8%. Prices broke below a line of support, confirming a bearish “head-and-shoulders” top pointing to a further drop of ~4% to just below 20,500. More significantly, this level lies in the area of a bullish runaway gap that opened in early December after the BJP government won three crucial state elections.