Nifty opened on a positive note but after making a high of 7840, it could not sustain on higher levels and started making lower tops and lower bottoms on the intraday chart. In the afternoon sessions the selling pressure intensified as Nifty broke 7800 mark. Finally after making a low of 7748, it ended at 7790 with a loss of 0.51%. The Advance Decline ratio was almost 1:3.
On Friday, Nifty broke its all time high of 7808, but it could not sustain on higher levels. On the 15 min charts, Nifty has started making lower tops and lower bottoms and RSI is showing negative divergence. Thus we may see a correction and it can test 7680, which is 38.20% retracement level of its recent upmove from 7422 to 7840. On the upside, one should take fresh long position only above 7840.