At last, Nifty finds resistance at a 0.382 fibonacci ratio around 8840/50 at open today. It reversed sharply from the days highs and made fresh lows at 8670/71 spot, down more than a per cent, before pulling back. Prima facie, it looks like Nifty bears are back with a vengeance, but the lows printed till now could be a bear trap. The indice need to drop lower at least by 50 points to register a fresh low. In any case, it is confirmed that a major top is in place at 9119 levels, registered on March 04, 2015. The downside extensions are 8400 and 7960 at least. Selling intraday/interday rallies could be favoured.
The USDINR bounces back sharply from yesterdays’ lows at 62.40/50 spot levels. It is seen to be trading at 62.70 levels at the moment and bulls are expected to remain in control. Maximum downside is around the support of 62.00 levels and the pair should be bought on dips.