Nifty charts have been like a pendulum between red and green candles. But finally we have resisted near to 8980 or to say 9000 level which i had been mentioning in my previous post and it looks like it was the end of 5th Wave of a smaller degree. So next would be correction phase which could be a sharp fall or consolidation phase. Fundamentally we dont find any trigger in coming weeks but may be politically we have UP election results to decide whether correction is going be a sharp fall or consolidation.
Technically we can decide to support levels which could help us to decide degree of correction, 8780: if current fall takes support at this level, which also has a gap unfilled, than we could consider this phase to be a consolidation but if we fall below this support than it can be more sharp correction towards . 8480 which is another gap unfilled. Taking some snap from indicators, we are in overbought zone on daily charts since January and a correction is surely due this expiry from Option data setup. So now i would short fresh on the index…
Strategy for Traders: Short Nifty with tgt of 8780,8560,8480 while Stop loss could be 9150 and would hedge buy going long on reliance with tgt of 1325 sl: 1150
Strategy for Investors: Arrange for some liquid funds as in next 20 sessions its gonna be opportunity to accumulate stocks at 8600 and than 8450 levels on Nifty.