RSI Divergence with Bearish Engulfing pattern!!!

HI All

Markets are likely to open on a flat to positive note tracking global markets, SGX Nifty is trading @ 8530 (+7 Points).

Markets opened positive yesterday but took resistance near by 8580 - 8600 levels and tanked by 80 points from its high.

As said in the last update that a break below 8540 will open doors for bears. Its broke 8540 yesterday and gave a low nearby 8500.

A close below 8500 - 8470 will lead to further fall till 8400 - 8350. Supporting to these we have a Bearish Engulfing pattern on daily charts with RSI Candle Divergence which suggesting a stop on the up move.

Areas to watch out :
Supports @ 8500 - 8470 - 8440 - 8400 - 8360 - 8330
Resistance @ 8600 - 8630 - 8670 - 8700

Bias remains negative until Nifty breaks and closes above 8600.

Trade with Strict stoploss and with Proper Money Management.

Regards,

Mayur S.