Following the global cues, Nifty opened on a negative note and fell below 7900 mark, thereafter it started making lower tops and lower bottoms on the intraday chart and made a low of 7746, finally it ended at 7785 with a loss of 2.33%. The Advance Decline ratio was almost 1:5.
Yesterday, Nifty fell sharply and broke 7800 mark again. We maintain bearish view on Nifty and now it can test its recent low of 7667. However we maintain our short term target of 7591, which is 38.20% retracement level of entire rally from 5118 to 9119. However a “Head & Shoulder” is clearly visible on the weekly chart and the target of this “H&S” pattern comes at 6811. Thus one should be cautious and avoid long positions.On the upside, Nifty has lot of resistance in the range of 8080 to 8100. Thus any bounce back would be a good exit opportunity from the long trades.