Following the global cues, Nifty opened with big downside gap and fell below 8300 mark. It tested 8200 level and made a low of 8195, thereafter it recovered smartly broke 8300 mark. Finally after making a high of 8329, it ended at 8318 with a loss of 0.75%. The Advance Decline ratio was almost 2:7.
Yesterday, after a gap down opening, Nifty recovered smartly from lower levels. But now one should take fresh long only above 8425 mark. On the downside, if Nifty breaks its 200 DEMA, which is placed at 8203, then we may see further downside and it can test its recent low of 7940 in the coming days. However the medium term target remains 7500, which is the target of “Head on Shoulder” pattern.