Nifty fails to close above 8666.

Wild swings, Nifty failed to close above 8666, indicating the tug of war between Bulls and Bears continues. While Nifty Bulls and Bears continues to fight for next price action; stocks resumed its underlying trend. Thus we witnessed huge buying pressure in quality and fundamentally strong stocks. IT was a surprise pack though! We have identified that IT sector has turned down since the month of July; however we witnessed resumed buying interest in IT stocks. We still believe IT stocks could move lower and the bounce back that we are witnessing is merely a dead cat bounce. While the short term trend in Nifty still remains intact Bullish, we expect the Bears putting pressure as long as Nifty fails to close above 8666 – 8680 levels. Once crossed we could test 8878; on the other hand continuous failure to close above this resistance zone could trigger correction in Nifty by end of this week.