Interim update on Nifty

Bottom Line: After reaching the target level near 7564 Nifty failed to show strength further. We asked to book partial profits near 7550 in previous interim update few hours back. The internal structure of the last leg from 6638 to 7564 shows only 3 internal waves. This makes the impulsive assumption susceptible. Also the Gap up opening is filled intraday. Avoid creating fresh longs. Trade cautiously and use 7080 as crucial stop on downside for remaining long positions.