Classic Positive Divergence!!!

Hi All,

Markets are likely to open on a flat to Negative note tracking global markets, SGX Nifty is trading @ 8518 (-20 Points).

Yesterday it opened below 8550 and traded below it throughout the day, it created a low of 8504.85 and close @ 8518. We can say that Nifty might take support @ 8500 (Physiological Support level).

Also on Hourly Chart Nifty gave a Classic Positive Divergence and a break above 8550 – 8555 will be positive for Nifty with
Resistance can be seen nearby 8600 – 8630 – 8660 and supports @ 8500 – 8480.

Areas to watch out
Supports @ 8500 – 8460 - 8400
Resistance @ 8550 – 8600 – 8630 - 8660

Bias will change to Positive if Nifty breaks 8550-8555 and stays above it for short term.

Trade with Strict stoploss and with Proper Money Management.
Regards,

Mayur Shah.