Positional trend on Nifty is bearish, resistance at 16,200: HDFC Securities

After forming "Doji" candlestick pattern on Monday, Nifty index has formed bullish "Engulfing" candlestick pattern on the daily chart, which indicates the short-term trend reversal. Many large cap stocks got oversold, which helped Nifty to show some pullback after deep cut.

Short-term resistance for the Nifty is seen at its 5-days EMA, which is currently placed at 16,204. Far resistance is seen at 16,500. Positional trend of Nifty is still bearish with lower tops and lower bottoms and, therefore, it would be advisable to trade longs with trailing stop loss. Support for the index is seen at 15,800.

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