RELIANCE seem to have formed H&S formation. Structure is tilted on the left and has formed over a long period (~10 months). Finally the structure seem to have completed though the price is still trying to bounce from the neckline. Today we have an evening star kind of formation which might push the price towards neckline in a breakdown attempt sometime this week, possibly tomorrow.
More importantly, I can see similar bearish formation (H&S and rising wedges) across charts and when you see Head and Shoulder (H&S) formations in multiple charts, it typically suggests a top formation is occurring in markets. It has been a slow process and might take some more time before these H&S start materializing so some amount of patience is needed. Overall it looks like we are close to making a near term top in Indian markets.
NIFTY has been moving up relentlessly lately but all good things come to an end. It’s just a matter of time but we should see a pullback in Indian markets soon. The pullback, though, could be small or deeper – only time will tell.
