Nifty ends with Bearish Engulfing

After fast and furious five days  we have got a bearish reversal pattern after a long time i.e., Bearish engulfing on Nifty. Market have been one way since last week but now it seems we may get some breaks on the rally. Confirmation of bearish engulfing could be only if we trade below todays low tomorrow or day two. Though my second target 8265 still active, but before reaching there we may get some slide to 7950. Indicators on daily charts are overbought so the slide could be as furious as rally and safe traders should avoid shorts and rather raise their trailing stop loss from 7810 to 7950 on longs recommended above 7700. Stock specific movement should remain positive on the D-street and traders must trade stocks rather than indices. As overall outlook is positive on indices, safe traders must not trade against trend and wait for a long entry below or just hold on longs with a trailing sl. On the upside targets remain 8265 and than 8400. Coming two days are crucial as tomorrow our markets would react to GDP 7.9% and on 2nd June we have OPEC Meet. So stay hedged with 7950 PE June.

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