I wrote on 27th Nov,16 that this 'W' pattern might emerge and it played out amazingly well. People will be bewildered with this rally. Market internals like BankNifty , CNXIT & Reliance all are showing strength.
Nifty has risen from 7900 to 8460 in a flash. Post consolidation for a few days it should start moving up again. This might be similar to last year phenomena when Nifty rose from 6800 to 9000 without giving significant declines. Today's weekly closing is very important. Closing above 8330-50 will confirm breakout on the weekly charts. FII's long positions build up in Index is confirming the breakout. Don't short play long keep booking some profits at important stops and reenter on supports.