Nifty opened on a negative note and fell below 8600 in early trade. Thereafter it started making lower tops and lower bottoms on the intraday chart. In the afternoon session, it took support at 8550 and witnessed recovery from lower levels. It made a high of 8624 and finally ended flat at 8615. The Advance Decline ratio was almost 1:2.
Yesterday, Nifty witnessed recovery from lower levels but it is still making lower tops and lower bottoms on the daily chart, thus one should be cautious on higher levels. We maintain bearish view on Nifty with our short term target of 8270, which is its 200DEMA, below 8270 it can even test 8150 which is 38.20% retracement level of its entire rally from 6825 to 8968. On the upside the range of 8750 to 8800 remains a strong resistance for short term.