Nifty forming an inverse head and shoulder was pointed out here Nifty update – inverted head and shoulder in progress
Accordingly, the index has taken out 7800 and is now eyeing 200-DMA level of 7875. That is also a larger falling trend line resistance.
The bird has jumped 1000 points since March 1, hence it will be interesting to see if prices manage to take out 7875 levels on closing basis, in which case doors would be opened for 8800 levels (inv h&S breakout target).
A rejection there followed by a drop below neckline would signal fresh sell-off to 7516 levels.