Conservative Short Nifty at 38% ( bearish divergence on Stoch.!)

We have a bearish Divergence on Stoch on 1hr chart. Entered short on Nifty at 8358 with SL above 8400 on 5/July/16 looking for a retracement upto .38% (8220). Also looking for a bullish Flag or wedge pattern (Consolidation) before entering long.

Could also look for 50% retracement with trailing SL to BE.