Looking at the monthly chart, it is one of the Elliot Wave Correction and Nifty is at the important level. My view is that the correction is almost completed and and can reverse anytime or it can go to maximum of 7900 level. So basically the point is to have a view of long and not a short biasness because nifty has fall 3200 points and one larger wave is coming near end. Yes the possible target of that wave can be near 7900 but it can rebound anytime soon. So according to me it will be foolish mistake if one shorts around these levels instead wait for the perfect setup and buy with proper risk management.