Where Are We? On Friday, the Nifty formed a reasonable negative candle at the high, which indicates minor negativity or sell-on-rise pattern around 9,000 levels.
What is in Store? We observe a formation of long bull candle on the weekly chart with upper and lower shadows. This has formed after a consecutive downtrend in the last one month. Technically, this pattern indicates the much-awaited up-side bounce from 7,500 levels with volatility.
What Could Investors Do? The short-term trend of the Nifty continues to be positive. It seems to have shifted into profit-booking mode from the highs of 9,050. Hence, the area of 9,000-9100 could be a key overhead resistance for the next one week. The important bottom reversal is still not confirmed, as we need more confirmation of positive action for any upside targets for the market. However, buying on dips with a stop-loss of 7,900 could be a prudent strategy in the near term. Any sustainable upmove (after a dip) above 9,100 could even stretch up to 9,900-10,000 levels in the next one month.