Broken out of the uptrending channel,and forming a complex abc x abc pattern.Maximum downside is upto 8550. But it could turn before that...
Because of the weekly ..
Weekly trend has turned up. Tomorrow is the weekly closing. So be cautious on shorts. Trend could assert itself tomorrow and show more weakness next week.Trade with stoplosses.
Coming back to the hourly, we see that Nifty has been moving along a 45 deg parallel line. Since it has broken the first line, it could move to the next.If this breaks then the next support is 8554, the green arcs.The overhead resistance is 8845.
Since we have the New Moon on April 19th, and since the Green Period starts soon, it is best to cover shorts on any sudden weakness.
In a nutshell, follow the shorts with a trailing stop loss,and go long once the stops are taken out.
Since the recent uptrend had crossed more than 61.8% of the down move from 9119, we consider the uptrend as wave e. We are currently in wave b of e. Which means there is one more upmove after the current down move.