Since last 2 session- update that it could be a short term top in the range 8250-8230 zone- got a decent downside move till 8075 lows in the last trading session.
The gap zone between 8155-8185 shall act as an important in upcoming session- this whole structure could turn out again as corrective on larger degree- so we will see what kind of move we get out of lows@8075 made on 2nd Dec2016 as there is higher chances that Nifty could go into the zone of 7900-7950- retesting prior recent low of 7915 or slightly below to bounce back sharply.
Looking for the gap 8155-8185 as resistance zone- assuming that prices hit that zone & falls below 8075- that could be an opportunity for sellers to get the chunk of a move going into the zone 7900-7950 in coming sessions.
Going below 8040-8050 zone likely that could be another clue that Nifty possibly retest prior recent lows of 7915 but do not hurry in taking trades as going into the zone 8040-8050- we should look for a bounce, which should not cross 8200-8210 on top which is the 2nd layer of resistance with 1st layer of resistance is the gap zone 8155-885- if intact-can have desired move for bears.
Previous Analysis is attached as related analysis & other key analysis
Bounce from 7915-7950 to relieve from oversold indicators
Got the moves above 8100 to 8230's & Down move from 8230 to 8075-8085
500-600 points from top 8600 top
hope you guys took the risk of buying close to the day's low as suggested in the update hidden between 8040-8050 is the key zone, which which will decide whether Nifty falls even further below close to 7990-8000 will be clear only once Nifty goes below 8050 mark.
Risk is only 6-7 points - I shall be losing against the gain of 90 points & going above above gap zone 8155- shall extend to 8200-8210 zone.
Going Below 8050 - Nifty will clear the way to atleast 7990-8000 zone - one can trade only if he is ready to put stops above 8100- which is crucial mark or any bounce after dipping below 8050 can also be taken as sell till 8100-8105 is intact on the upside.
Now I had trailed my stops to day's low@8055 - this is how I take care of risk part of my trading -shall not be losing any bit & enjoy the game- if rallies upside to desired zone of 8155 & above that 8200-8210.
Let us leave & Book Profits ---wait at sidelines to see further market action
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ