Nifty has been quite volatile since last few weeks but during this course it has created a upside sloping channel on weekly charts as marked in the attached chart. Momentum seems to be strong for the upside rally in coming week or two as indicated by weekly indicators. But now daily charts are bit confusing to our weekly momentum or may be we can say that markets could resist at 8400 level which is the next week channel resistance level on weekly charts. We have got a shooting star on daily charts on Friday which is creating some sign of caution to traders!
So may be i would recommend now to be cautious on initiating a fresh longs from current levels but rather we may hold c/f longs with sl of 8265 and may be book profits on long around 8400 anytime next week before going shorts. So as of now my recommendation is to wait and watch for 8400-8265 range to square off existing longs before initiating any fresh positions on Index.