Finally Nifty produces an engulfing bearish reversal signal on the Daily chart view today. The indice dropped to intraday lows at 8722 before recovering and closing around 8750 spot levels at close. Todays move has happened right at the resistance zone of 8800/30 levels as discussed in the morning report. It is safe to confirm that bears might have just taken control back, and one could initiate short positions tomorrow at open or during intraday rallies, with risk around 8950-9000 spot levels. We have been discussing about a potential Nifty reversal since last week and todays drop could be the confirmation.
The USDINR on the other side has remained in a tight trading range today between 62.34 and 62.42/43 spot levels till now. The pair is expected to break higher any moment though and it still remains a great buy on dips from here on. Immediate support is seen at 62.00 spot, followed by 61.30 and lower while resistance is seen at 62.70 and higher respectively. The bulls are poised to remain in control till prices stay above 61.30 levels from here on.
Most sectorial indices closed in the RED today with Bank Nifty at -0.44%, Auto at -1.54%, Energy at -0.13, Finance at -0.88%, FMCG remained flat while IT was down -1.45% respectively.