An important thing to note is that we are approaching the end of the month. The index’s opening this month was above last month’s closing. If the index now closes below the last month’s open of 11057, it will form a Bearish Engulfing candle on the monthly time frame.
Historically, over the last few years, whenever a Bearish Engulfing has formed following a rally on the monthly time frame, it has been followed by a correction in the subsequent month or two. Hence, a monthly closing below 11057 would warrant caution going forward.
