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Bears can strike again and nifty can crash to 7700-7500 levels.

Short seller's market. Sell on Every Rise. Traders Market.

Last Friday, Nifty made new low 8555 and from there witnessed bounce back in the form of counter trend wave.
From 10150, Next leg of selloff  Impulsive down wave has begun. yesterday , as we expected in last update, nifty recorded new low 7840. Due to Weekly options settlement and in minor counter trend wave it bounced to 9575 level but failed to sustain above it.
As per classical Technical Analysis, Rule of Polarity says that Support once breaks it becomes Resistance.
It proved again yesterday.
8555-8600 zone now acts as resistance levels.
Yesterday's low 7840 now vulnerable to break down again and new lows possible.
Significant levels to watch on downside are 7700-7500.
By Observing market momentum, we can easily get the clue that Every Bounce getting soldoff.
Sell on Rally market.
New investors need to stay on sideways till market correction finished.
This is traders market, especially short sellers market.

Nifty daily range rose up to 500-600 points so, high risk traders only can trade in this kind of scenario.

Resistance 8575-8600-8700.
Supports 7700-7500.

Trade accordingly.
Regards,
Suryadev Bandari
Research Analyst



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