Refer to my previous posts, the index is following May 1993 patterns. A huge GAP UP and then partial retracement causing panic among traders only to move up again, creating an island below. This is Case-III which I referred a few posts below. Now what?
Nifty is forming a double top around 4600. This is a zone of strong congestion. If Nifty is unable to Gap Up this zone, then the very bearish 'M' wave will get formed.
So advice would be to book 80% profits here and re-enter above 4630, if nifty sustains above that for 3 days. But I am still optimistic of a clearing above this congestion zone.
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