1. Nifty Chart Setups:
Nifty closed higher than expected yesterday around 8659 levels. The indice could rally straight to 8800 levels or take a pause and then resume rally. Immediate support is seen at 8400 spot, followed by 8260 and lower while resistance is seen at 8800 spot, followed by 8900 and higher respectively. Aggressive trade setup is to remain short for a dip towards 8400 levels while a more conservative strategy could be to remain flat and go long around 8400 spot. Please note that 8800-8900 spot levels remain key for a bearish resumption, and confirm a deeper correction lasting several weeks.
Remain short now, stop at 8730, target 8400.
2. USDINR Chart Setups:
The USDINR seems to have bottomed out yesterday around expected levels of 61.90/62.00 spot and bounced back smartly. A dip towards 62.10 spot overnight has confirmed retracement and resumption of the bullish setup. It is recommended to remain long from here on with risk at 61.30 spot levels. Immediate support is seen at 61.30, followed by 61.00 while resistance is seen at 62.80, followed by 63.10 spot levels and higher respectively. The pair is poised to stage an impressive rally from current levels for several weeks to come by.
Remain long, stop at 61.30, target is open.