Ideally, a close below 7400-7500 level would make the Nifty healthy and lead to a huge, fast wave up, but the formation of this double bottom needs to be seen very carefully.
Confirmation of this double bottom is quite some time away (8340-8350+). If it crosses, then we are in a huge wave up that could last for many months.
Action: ONLY FOR TRADERS WITH RISK APPETITE
One can take 30% positions now. Watch the upper level and add there. If Nifty crashes to 7500 or below, we will take another look. One can add there. Ideally, according to celebrity traders, it is always better to average in the direction of confirmation. But, since we are only taking 30% positions and expecting a bull move after this bottom, it is alright to add carefully at the lower levels.