Engulfing Bear . . .

Hi All,

After a indecisive candle near the Downward Gap resistance day before, yesterday bears took charge from bulls and closed the day with an Engulfing Bear candle.... Also, the red candle yesterday occurred with a significantly huge volume. Even the trade happened with a Candle divergence on RSI. All of this suggest that bears have an upper hand but if and only if Nifty goes below 8130-8100 levels in today’s trade.

As expected nifty did not break 8140-30 levels mentioned as supports in yesterday’s post and markets traded with a tight range of around 50-60 points after opening higher above 8210 levels.

Going forward, Nifty can witness a selling pressure if it breaches the 8100-8130 mark, n the higher side the resistance is pegged at 8210-8230 levels.

Levels to watch out for intraday are –

Supports – 8130-8100-8060-8000-7940-7850

Resistances -  8185-8210-8230-8260-8340

Cheers