1. Nifty chart setups:
Nifty has finally produced an engulfing bearish candlestick pattern on the daily chart view yesterday after closing lower at 8750 spot levels. This could just be the beginning of a deeper correction that could extend towards 7700/7800 as well. It is recommended to initiate short positions now with risk around 8950 spot levels. Immediate support is seen at 8700 levels, followed by 8600, 8450 and lower while resistance is seen at 8900/50, followed by 9000 and higher respectively. Only a push above 8900/9000 levels would indicate that Nifty is headed towards fresh highs. At the moment, bears are determined to drag prices lower.
Initiate fresh short positions, stop at 8900/8950 spot, target 7800.
2. USDINR chart setups:
The USDINR has remained subdued between 61.90 and 62.40/50 spot levels since last several trading sessions. Believe it or not, the pair is heading towards a bullish break out anytime. The pair seems to be set to hit fresh highs above 63.10 spot levels in near future. It is hence recommended to hold long positions and also look to buy further on dips, with risk at 61.30 spot levels. Immediate support is seen at 62.00/61.90, followed by 61.30 and lower while resistance is fixed at 62.70/80, followed by 63.10 and higher respectively.
Remain long, stop at 61.30, target is open.