The Nifty Future rebounded strongly from the lower boundary of the channel of Wave (B) to fill the gap it formed a day before and closed at 10790.65, very near to its day high of 10796.9. The basic structure which I am analyzing as a flat correction is still intact. In the 60-min Chart, the decline from the end of Wave (B) from 10873 to the low of 10704 is in three waves formation indicating that possibility of Wave (B) is still in progress and can rally to a new high of 10937. It has the supports at 10780 and 10761.
The day trader can sell it below 10760 with a stop loss of 10786 for the target of 10704 and 10670 and buy it above 10828 with a stop loss of 10778 for the target of 10874 and 10937.
The positional traders holding short position should place the stop loss at 10830. They can again create short below 10750 or near 10937 for the target of 10335.
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