Refer my previous post to understand the broader chart and basic structure of the market.
The hourly chart reminds me of a famous quote -- History never says Goodbye, It says see you later. Whenever Nifty breaks above previous top/peak, the price lately retraces back to the breakout level (notice this behavior ever since the index has been gyrating in sub-channel 2). If it is to happen again the index may slide down with in the downward sloping channel to test 9530-9550 zone, which is a nice confluence point of static as well as dynamic support lines and hence can act as potential support. However, a strong move above 9710 would negate this hypothesis.
#Never trade breakouts, trade pullbacks. Never risk more than 1-2% of your capital on a single trade.
Thanks
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Chart displaced slightly while posting. A peak is missed but purple levels are the peaks only.
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Here is full chart.
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jethendra
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Good Analysis..expecting NIFTY to correct for Long term which can happen in next 2-3 months
dasAbhishek
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should we start writing 9550CE AND buy 9650PE
Bravetotrade
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@dasAbhishek, I can only advice that trading in naked options is quite risky. Trade only if you have 'good' experience trading options.