Nifty View.

Trend is decided by Dow Theory.  Wave Theory will tell the direction clearly.  

Lot of people are confused about the recent falls.Prediction of lower levels scares people. We are analysts and so we have to present that picture which the charts show us.

Nifty broke the Trend line (ABC Pattern) on 11-01-2016 but it failed to close  below 7500 (Physiological level) and moved to 7605 spot levels. The movement looks Impulse in hourly time frame .  

First I was of the view it would break 7500 levels.  But sometimes Market may treat that break as a false break-out.  In this scenario if it fails to break 7489 spot once again in the next 2-3 days, then, we can expect a move towards  of 7682-7736 spot levels but confirmation is needed. 

Confirmation points: 

1. Without any major retracement, the up move  should be rapid like today with heavy volumes. 

2. It should break all the below mentioned resistance  with force. 

3. Break of 7555 spot.

Hence use 7489 spot as the stop loss for all longs and Call options. If the speedy fall continues, then exit from longs and go short for further down move till 7402-7382. Without breaking 7489 spot, if starts to move very swiftly upwards we can assume this as an resumption of an up trend.