The daily chart shows signs a corrective phase is just around the corner. Bearish divergence and global pressure as well as the setting of a slightly lower peak on the near therm support this idea. Any such correction will take place in the weekly (primary) uptrend as long as 8070<>8030 holds out as main support zone.
Cover excessive longs and keep a close eye on the mentioned zone; even though there is no big reason to expect a large turn around, we do think the primary trend lacks conviction and thus remains susceptible to bearish action elsewhere in the world.
- Primary trend: moderately positive
- Outlook: near term correction, long term slightly positive only
- Strategy: cover some longs, raise trailing stops to 8030
- Support: 8482 / 8030 / 7405
- Resistance: 8622* / 9120
Daily chart NSE Nifty