Nifty opened on a positive note but after making a high of 8760, it started making lower tops and lower bottoms on the intraday chart. In the afternoon session it fell below 8700 mark and made a low of 8645. In the last hour of trade, it witnessed some recovery and finally it ended at 8706 with a loss of 0.50%. The Advance Decline ratio was almost 1:2.
Yesterday, Nifty corrected further and made a low of 8745. We may see further downside and it can test can test 8625, which is 38.20% retracement level of its recent rally from 8269 to 8844. But if it breaks 8625 then the next support will be 8557, which is 50% retracement level. The level of 8850 remains an important resistance hence one should take fresh longs only above 8850.