Nifty Daily Analysis

• Nifty has given another bearish engulfing pattern in daily chart. In a normal situation a bearish engulfing pattern at the bottom of  a trend may not be effective. But nifty has been in continuous selling mode with no reversal in sight. So this pattern may help it to extend the bearish rally.
• But there are one or two factors that might keep the bulls interested.
• Stochastic has been flat for sometime now while the index has been falling. At some point this divergence should give a bounce. So this might happen now or from near 5350 level.
• 5350 - 5400 is the next level that may give some hope for the bulls.