Nifty50 forms a ‘Spinning Top’, signals bearish bias, investors may sell on Rallies

The bulls surrendered to a global selloff on Monday, with the Nifty50 conceding multiple support levels as it formed a 'Spinning Top' pattern on the daily candlesticks chart. 

 

The formation of this pattern could mean that the traders might opt for selling on rallies in the near future. 

 

A 'Spinning Top' pattern is formed when the real body of the candle is small, but it has distinctive upper as well as lower shadows. This is testament of a wide range of price movements throughout the session. 

 

Before most domestic investors opened their eyes this morning, a 140-odd points crash in Nifty50 futures in Singapore had scripted the story for the day.

 

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