Nifty started the day on a positive note and made a high of 7934, but thereafter it witnessed some profit booking. In the afternoon session, it took support at 7874 and bounced back smartly. It made a high of 7936 and closed at 7927 with a gain of 0.61%. The Advance Decline ratio was almost 6:5.
Yesterday Nifty broke its recent high of 7930 in intraday trade and made a high of 7936, with this it gave a confirmation of higher top on the daily chart. On the intraday chart Nifty has broken the neckline of Inverse “Head & Shoulder” pattern. The target of “H&S” pattern comes at 8085 so that is our first target. However, the next target should be its all time high of 8180. On the downside, the level of 7870 will play as an immediate term support. The short term support remains in the range of 7700 to 7720.