1. Nifty chart setups:
Nifty closed around 8600 spot levels on Friday, finally producing an engulfing bearish candlestick pattern on the weekly hart. Please note that this could be the beginning of a deeper correction which lasts for several weeks. It is still very much recommended to remain short and initiate fresh positions during intraday rallies. Immediate supports are seen at 8450 spot, followed by 8100, 8000 and lower while resistances are seen at 8800/30, followed by 8900 and 9100 respectively. Friday blood bath in the global equity markets would continue its effects during open today as well.
Remain short, stop at 8950 spot, target open.
2. USDINR chart setups:
The USDINR on the other side has rallied over night through the 62.50/60 spot levels as seen here. It is expected to open higher in that region and continue pushing further. It is recommended to remain long and also look to add further positions during intraday dips. Immediate supports are seen through 62.00 spot levels, followed by 61.50/30 and lower while resistance is seen through 62.80 spot levels, followed by 63.10 and higher respectively. The US Dollar index could go weak, but USDINR is expected to gain further.
Remain long stop at 61.30, target is open.