“NIFTY is likely moving towards the post-election crash low of 21,281 on the spot market. I think that level will also break, and the index should gradually move towards 20,200-20,300 on the spot market. Now, the question is whether this happens right away or after some bounce; that’s something I will try my best to address below.”
For the past several months, I have consistently highlighted the 21500-21700 range as a crucial support level. This zone indeed offered notable support in early March. However, the index is currently retesting this critical area, and as long as the 21500 level holds on a spot basis, we may still witness temporary upward movements before a potential continuation of the downward trend. Regarding NIFTY BANK, its projected cycle date falls on April 9th, and I anticipate that it too will likely retest its March low. We shall observe the outcome.
Follow on update for APRIL 8th
“Yesterday’s low of the S&P 500 should be an important bottom for the near term. So, from here on, NIFTY would have to establish its trajectory independently. For short-term trading, it’s not going to be an easy market. However, the underlying trend continues to be ‘sell on rise.’ Therefore, stay short and operate at less than your normal volumes, and be prepared to add further short positions if the NIFTY spot rallies towards 22800. Tomorrow’s RBI policy is going to be very important for Nifty Bank because that’s a cycle date for that index. For NIFTY in the immediate term, 22200 would be a somewhat important support.”
gann,insides 