Today was expecting the wave 3 of 3 or C to start so was expecting a strong force downwards. Nifty opened higher than previous close and retraced its price upto 50% where it witnessed a quick sell off and another rally closing at a positive. Extremely Volatile day. Many recent bullish news such as the insurance bill, Rate cut , WPI could have taken effect and we may have formed a short term bottom. This I think could set up for a new high in Nifty and Bank Nifty. The overall structure of Nifty has completed 3 waves down so if tomorrow we open higher than today that means new highs might be on the cards.
The low 8612.15 is important if prices go lower then the count is invalidated.
Sell Below : 8695
Supports : 8644,8612,8590
Buy Above : 8734
Resistances : 8762,8803,8846