Rickshaw Man and -ve Classic divergence on 60mins!!!

Hi All,

Markets are likely to open on a flat note tracking global markets, SGX Nifty is trading @ 8728 (-6 Points).

After rallying 200+ points from Budget day low of 8537 till yesterday high of 8757, Nifty on daily charts gave a Indecisive candle – Rickshaw man. Break below 8685 or above 8757 will decide the future move.

However, its overbought on daily and hourly charts, so upside movement is limited with resistance nearby 8780 – 8810. Also on hourly charts there’s a classic RSI Negative Divergence which will triggered when Nifty breaks 8690 – 8680 levels with supports nearby 8600 – 8540.

Areas to watch out
Supports @ 8670 – 8610 - 8540
Resistance @ 8780 – 8810 - 8870.

Bias will change to Negative for Short term if Nifty breaks 8690 – 8680.

Regards,
Mayur Shah.