Nifty still in Bearish zone :: HDFC Securities

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Second Near term Target of 8180 Attained.
Day’s action formed a counter attack bull which is a bullish reversal pattern but confirmation is on a rise above 8250.
Technically, index has attained our second near term target of 8180 levels which is 50% retracement level of last rise
from 7723 to 8627; low made during the day was 8152. Index is showing some sort of recovery possibilities and on
any rise above 8250 we may expect minor bounce up to 8290/8300 levels. Index is trading within the falling channel
on hourly chart; a break above 8250 could validate a breakout and this could lead some pull back in the market.
Make note this is a counter trend bounce within the downtrend. Trend reversal from downtrend is placed at 8376
levels.
However the short term downtrend is intact as index is trading below the short term moving averages and forming
continuous lower lows on daily chart. Next falling leg could resume on a fall below 8150 levels. The progressing
minor or major correction is retracing the last rising leg and so far it has retraced 50% of the last rise. Next the key
retracement level of 61.8% is placed at 8060 levels. The faster retracements are in favor of sell side.
Weak A/D ratio has been witnessed and index has breached the last week’s lows which are additional bearish signs.