The Trendline which was drawn from the May low of 4786, was already broken by the Nifty. But, Nifty is still showing some strength upside. Since the crucial trendline has already broken in the downside, it can be assumed that Nifty is likely to top out in the near future.
Break of trendlines not always followed by sharp trend reversal. Some times it would be followed by a weak rally. In this type of break out, now the same trendline would act as resistance in the upside. Unless, Nifty once again moves above this trendline in another 2 or 3 trading sessions, Nifty is likely to see a sharp correction in the downwards.
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