It is been observed that the price action is trending down in a channel and now the price action has reached out to the crucial support levels of 8540-8570. Further it will be interesting to watch whether Nifty would break out and close below the important support level of 8540.
Around 11th of August There is a gap up opening and those levels between 8350 and 8400 needs to be filled out... I am not going to be surprised if we see 8200 levels easily. Even if we take the channel pattern you have drawn, there is a channel high and low of 8900 and 8500. Roughly 400 points. usually in a pattern breakout or breakdown, you can expect price to travel 400 points so technically 8000 could be a target but 8200 onwards buyers may come in.
NeeteshJain
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@Suresh_gundappa Yes, Once it breaks and closes below 8540 then we might see 8350 levels which was that previous gap up levels that you mentioned. Let's look out for a breakout on either side to confirm the future trend in Nifty. Thanks for sharing, Regards