|Nifty Daily Chart|
On the daily chart, we can see the Nifty hovering near the upper range of the rising channel it has been trading in for the past couple of months. This means that we could see selling pressure coming in the markets at current levels. The index could slip to 7960 levels this week if 8150 is not broken. On breaking and sustaining 8150, expect a sharp rally in the market for 150-200 points. On the downside we could see Nifty correcting to 7960/7920/7840 levels. For the medium term, Nifty has strong support at 7720 levels. We are in a strong bull market where all resistances are getting broken and any shorts need to be taken with hedges or proper stoploss. The interesting scenario is that if 8150 breaks and Nifty rallies to 8350-8400 levels, that could mark the last leg of the current rally and a 10% correction could set in.
The hourly chart of the Nifty index shows strong support for the index at 8060 levels. Nifty has failed to sustain any dip to 8060 levels. At the same time the index has been creating Lower highs and Lower lows indicating a good chance of selling pressure. If Nifty does sustain below 8060, expect it correct down to 7960. Put a stoploss for the trade at 8100 (Spot). Buy on a break above 8115, SL: 8100, TGT: 8145.