Nifty future today closed with a loss at 8530. We saw fresh low near 8500 on a fresh selling spree. Nifty future price trend and momentum both are bearish but prices are at an oversold level so expect strong and sharp short covering rally in short to medium terms.
My view still bullish for indices and we saw a gap up opening in bank nifty future which already signaling bottomed out stage. For nifty future my view is same and so keep buy on dips view on nifty futures for minimum target of 8730.
On the downside, nifty future has critical support at 8460.breakdown below it means panic as well as lower level up to 8300. But that probability looks less likely. So traders can buy nifty October future on the decline with a strict stop loss below 8460 and expect first swing target at 8730. Options traders can buy next month in the money nifty 8500 call options on the decline with the same stop-loss for big gains in medium terms.
Nifty weekly chart suggesting if recovery does not come for nifty future around these level then expect medium to long term lower target up to 8160.