“Following yesterday’s close above 23100, as previously analyzed for the NIFTY, the technical landscape has become moderately intricate. While the current movement remains a pullback, ultimately anticipated to drive lower lows beneath 21965, a short-term upward trajectory is possible, potentially reaching 23800. This advance could foster a perception of a renewed bull market; however, a subsequent retracement is still expected. Similarly, within the small-cap and mid-cap sectors, while near-term gains may materialize, a subsequent, substantial decline is projected.”

“The downside support for the NIFTY spot has shifted upwards to 23000. Going forward, monitor this support level closely. Monday should be an interesting day for both Indian and U.S. markets. Specifically, Monday’s intraday low will be critical. Let’s observe.”

“As I discussed on March 7th, the NIFTY’s upside resistance would be at 22,800 and 23,100 on the spot. Regarding the time frame, the critical window from March 8th to March 18th ends today. Therefore, going forward, the low registered within this time window, 22,314, will be very significant. Once that level breaks, the next leg lower should resume. However, until that happens, the index should remain sideways to positive in the immediate term. While the equinox is generally important time-wise, more significant dates would be March 24th, April 4th, and April 7th. The sell-on-rise approach continues, with trades focused on the June expiry.

NIFTY’s Pivotal Period: Decoding Market Signals

“The NIFTY is in the midst of a very important time cycle window, from March 8th to March 18th. In past posts, I have been discussing this time window as a critical period for the NIFTY’s medium-term trajectory. Originally, I was anticipating a durable bottom somewhere closer to 21,700 on the spot index. However, the index has managed to escape that level for now, and this is an extremely important message the markets are sending us.”

“A failure to bottom within this critical window (March 8-18) signals a risk of extended downside, delaying the anticipated durable bottom by weeks. Conversely, a standard correction would have concluded within this timeframe.”

“The index’s current behavior strongly points towards a retest of the 2024 swing lows, between 21,100 and 21,300 on the spot index.”

“I also explored the possibility of a strong or medium-term bottom at the March 4th low of 21965, but unfortunately, that doesn’t fit mathematically. I will tell you why.”

“In geometric proportions, two line segments must maintain a consistent ratio. This means line segment A cannot become proportionally shorter than line segment B. I will illustrate this principle with a practical example below. Please remember this mathematical rule, as it will be crucial for our future analysis.”

“Let’s explore this further.”

“From the September 27th, 2024, high of 26277, the Nifty spot index experienced a decline to 23264 on November 21st, 2024. This decline represents a drop of 3013 points. Let’s designate this decline as ‘line A’. Please retain the value of 3013 points as we proceed.”

“Now, from its secondary high of 24857, recorded on December 5th, 2024, we draw another line, which we will designate as ‘line B’. The crucial point regarding line B is that, in the bare minimum scenario, its length must precisely match that of line A. Subtracting 3013 points from 24857 yields a value of 21844. While 21965 is quite close, unfortunately, it still falls short of the minimum required length.”

“Just as in mathematics, where 2 + 2 invariably equals 4 and never 1.9, we can confidently assert that a definitive bottom has not yet been established for the NIFTY index. Regardless of the current market fluctuations, we anticipate that this is, at best, a temporary pullback. Consequently, we expect further lower lows in the near future.”

“Given the crucial mathematical relationships that guide market movements, and the enduring nature of geometric principles despite market volatility, this analysis strongly suggests caution, as further lower lows are probable. We will maintain close observation and provide updates.”

“NIFTY BANK is at an interesting point. Regardless of the reasons, we finally have a lower low on the weekly and monthly charts. 47,750 on the spot is a very important level. If the index can sustain below this level for a couple of sessions, then we would be looking for a drop towards 46,200 to 45,600 in the next few days. Top heavyweights like HDFC Bank and ICICI Bank are still holding above their January lows, which has put the banking index and the overall market in a consolidation phase. I have been a strong believer that both ICICI and HDFC Bank will see fresh lower lows, but it’s just taking more and more time, especially with what happened with IndusInd Bank. There are forced inflows in stocks like ICICI Bank and SBI, but I guess this won’t last long. Let’s see.”