May 7, 2015
- Bearish day's like yesterday should not be a shock when price is trading close to a bearish engulfing pattern in Month chart. Price staying below April month low of 8144 will favour bears.
- Immediate levels where support may come for nifty are 8065 and 7961 as shown in 2nd chart. Looking at the month chart these levels too does not look that strong and may end up giving small bounces.
- First and foremost bulls must get back above 200 SMA immediately to avoid bigger correction. Daily RSI is oversold but if price spends time below 200 SMA it may remain oversold.