NIFTY UPDATE

NIFTY; requires a rally before fresh sell off. On Friday we discusse the importance of 17,472 on NIFTY SPOT. Today it went slightly below that, but recovered quickly. There are more then 2,reasons why 17,472 is critical? Not only PRICE, wise it’s important TIME wise too that is an important level. If you are expecting a short covering rally on MARKETS then you don’t want to see, NIFTY closing below 17,472. A daily close below 17,472 and a print of 17,391 on spot, would rule out a substancial rally on upside. Level of 16,855 would open up below 17,391 but not in short term. There is a TIME breakdown below 17,391. According to PRICE PATTERNS next major test for NIFTY would be at 17,150 on downside.
During the month of february we may test 17,150. In case there is a rally after BUDGET or FOMC MEETING that would be an opportunity to add fresh shorts. There would be a rally, but size of that rally is something we would figure out later. NIFTY BANK too need to break 39,000 for further slide.