Current Nifty Trend as of Aug 27

Looking at the current trend in the Nifty we see a very evident "Cup and Handle" continuation pattern. The overhead resistance of 4700-4730 remains to be challenged. Last few days of the uptrend seems to be losing steam.

We can expect a small retracement back to 4530-4480 or a sideways movement to get rid of the overbought conditions. After which a strong upmove can be expected which will face resistance at 4790 (62% Fibonacci Retracement of the entire bear market). If that is cleared levels of 5000 can be easily seen within few trading days.


The best way to play would be to Sell 5000 September CE for the immediate stagnancy or correction for aggressive traders.
Conservative traders can wait till the 4790 resistance is broken to Buy Calls.