Bearish Engulfing candlestick pattern!!!

Hi All,

Markets are likely to open on a flat to positive note tracking global markets, SGX Nifty is trading @  8786 (+15 Points)

Nifty yesterday went above 8800 but was unable to sustain above 8800 and came down to 8736 and then traded in a range throughout the day – 8735-8765.

On daily charts Nifty gave a Bearish Engulfing candlestick pattern on daily charts @ a daily gap down resistance of 8810 – 8822.  On hourly charts Nifty is gave a candle divergence and a break below 8730 – 8720 will be Negative for Nifty in short term with Support can be seen at 8640 – 8600 – 8550 and resistance nearby 8800 - 8820.

Areas to watch out

Supports @  8730 – 8690 - 8640

Resistance @  8800 – 8830 - 8870.

Bias will changed to Negative if Nifty breaks 8730 – 8700 levels.

Trade with Strict stoploss and with Proper Money Management.

Regards,

Mayur Shah.