Bottom Line: Nifty had a strong Gap up opening and sustaining it so far above the previous high of 8535. This is indicating that wave (iii) of v is probably extending and the current up move is still intact as the low of 8430 was protected. Avoid creating short positions as prices can now move towards the target levels of 1.618 * (i) which is near 8770. If prices again move back below 8535 then this entire wave v will become Ending diagonal.
Either ways the trend for now is positive. GDP data and RBI policy due next week can result into short term volatility. Trade with strict stoploss of 8500!
Nifty 60 mins chart:
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