Bearish Engulf!!!

Hi All,

Markets are likely to open on a positive note, tracking global markets, SGX Nifty is trading @ 8726 (+19 Points).

The much-awaited monetary policy was a non-event yesterday, Where the Repo Rates were unchanged and because of this markets came down till 8638 and bounced in the second half giving a close above 8660 at 8671.

In the last update we mentioned that Nifty took support of super trend on hourly charts, 8700 - 8730 can be seen on charts soon.

On daily chart Nifty gave a candle Negative divergence with a Indecisive candle on 8-Aug and followed by a big red body(Bearish Engulfing Line) which indicate there might be a stop in the up-move. However the entry will happen only when Nifty breaks 8640 - 8630 levels with supports nearby 8590 - 8520.

Areas to watch out :

Supports @ 8680 - 8630 - 8580 - 8560

Resistance @ 8730 - 8770 - 8800 - 8850

Trade with Strict stoploss and with Proper Money Management.

Regards,

Mayur S.