In our various posts for the past week or so we had mentioned that 7950 is a potential downside target and break of that could only signal another downside trend
The fact that markets scaled back to the levels despite a sentimental gap down proves how important that zone is. Also the fact that it didn’t take it out yet means bears may still be remotely hopeful for a potential resistance.
But what it does is brings us back to the congestion and directionless zones of 7900 on the downside and near 8150 on the upside. This will mean for the coming few sessions until either of the levels is cleared trend traders are going to find a tough time ahead.
This is also confirmed by the fact that despite expected the INDIAVIX( indicator for ) today fell sharply and corrected -12.5% on an intraday basis.
The good part is for discretionary contrarian traders this may provide good pull back trade opportunities at a low risk with either of the upper or lower band as a stoploss.
If you intend to still trade the trend advice would be to wait for a clear of either of the levels on the upside or downside and you will get your move.