|Nifty Daily Chart|
7975 levels on the daily chart is a crucial price action level. As shown in the chart by the highlighted circles, 4 times the market has seen a trend reversal from near this zone.
Furthermore, the index has formed a hanging man pattern on the daily chart which again signals a reversal after a strong rally. A pattern should not be judged individually.
Applying the principals of technical analysis, a reversal pattern near a strong resistance means that the chances of a reversal are high. In the coming sessions we can see the index drift towards 7700 levels if 7985 doesn't break.
Watch out bulls.
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