Nifty opened on a positive note but after making a high of 8446, it could not sustain on higher levels and fell sharply. It took support at 8382 and witnessed some recovery, finally it ended at 8421 with a loss of 0.03%. The Advance Decline ratio was almost 2:3.
Yesterday, Nifty was not able to sustain on higher levels. The 50 DEMA and 100 DEMA are placed in the range of 8430 to 8440 and the neckline of H&S pattern is placed at 8465 on the weekly chart. Thus Nifty has multiple resistance in the range of 8430 to 8470. Now fresh longs should be taken only above 8470. On the downside, If Nifty breaks 8375 then we may see further downside and it can test 8200. Thus one should be cautious on higher levels, the medium term trend is still bearish and target remains 7500, which is the target of “Head & Shoulder” pattern.