Day trading guide by Edelweiss Securities

Following three sessions of consolidation, Nifty exhibited a strong rally and closed at a new cycle high above 7950. However it faces strong resistance at the 7980-8000 cluster from the 50% Fibo retracement mark and the Decemebr-2015 swing tops which should lead to hesitation.

Unless 8000 is taken out on force and sustains higher there is a possibility of Nifty entering a corrective phase once again in the short-term. On the flipside, surpassing the psychological milestone of 8000 can led to rally stretching up to 8240.