So there was a retracement of 23.6% in the downfall and the 200hma played resistance as price could not close above it indicating that the major trend is still down. The 20 dma is also above the current prices which would be another resistance as we retracement the current down move. Although this move could go above and beyond the previous high the possibility looks bleak as there has not been any growth in corporate earnings and the yearly earnings report due this month could be the major factor for a trend change. Along with corporate earnings the current currency situation also poses a threat.
8780 is the major resistance going forward and if Nifty is unable to go above then we are stuck in a range of sideways movement until 8680 is taken down.
Resistance – 8811,8840,8890
Support – 8740, 8684