Nifty started the day on a positive note and tested 7800 mark but it could not sustain on higher levels and fell sharply. In the afternoon session, the selling pressure intensified as Nifty broke the support of 7720. It made a low of 7595 and ended at 7637 with a gain of 0.19%. The Advance Decline ratio was almost 1:6.
Nifty has already corrected 61.80% of its recent rally from 7481 to 7808. Now it has major support in the range of 7480 to 7440. Long positions can be held with stop-loss of 7440. However, on the upside now 7800 – 7810 will play as an important resistance. Thus one should take fresh longs only above 7810.
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