In our last weekly report we had mentioned that NIFTY had a target of 7707 and we were expecting profit booking to emerge from 7736. If the NIFTY were to close above 7736, the next upside target was 7862. Last week NIFY made a weekly low @ 7617 and rallied to make a weekly high @ 7728 and finally closed the week @ 7716. In the current week NIFTY has support @ 7627 - 7573 - 7483 and resistance @ 7736 - 7888 - 8060.
In the current if NIFTY trades below 7736 and then also breaks 7627 on the down side, we can understand the market has entered into a mode of sideways - down correction. This correction can last for a minimum of 3 days or more and bring down the NIFTY to next support levels of 7573 - 7483.
Bulls should keep a SL @ 7627 on long positions, below which profit booking is advisable. While this correction is not for short selling aggressively. However, it should be noted that this a correction in a bull market and it will be advisable to buy selectively towards the end of correction.
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