Nifty broke above the crucial 7541 levels but failed to sustain above it as it sharply reversed its gains after hitting a high of 7582. A break of of 7461 level on the downside should be used to exit any initiated long positions as it may indicate an extended correction before further rally. It would also signify that we would need to wait for clarity on further price developments for indications of an end to the correction. The level of 7582 now becomes a crucial resistance.
If the markets continue to stay above 7461 and more importantly manage to break above the upper trend line of our hourly channel shown in the chart above, there is still a high chance that we may meet our short term targets of 7700-7750 on Nifty.
Nifty daily chart for reference: