NIFTY had a strong day today on back of strength in PRIVATE BANKS and recovery in I.T. STOCKS.
in morning it tested the primary support of 22,220 which we were discussing since past 2 days  post testing those support INDEX regained its strength and went on to make a fresh high in final hour of TRADE!

BROADER MARKET accelerated its decline.

MIDCAPS and SMALLCAPS has been trending lower since they registered their TOP since 2nd week of FEBRUARY.

Even when NIFTY has been making new highs BROADER part of the MARKET had not been participating much.

Technically smallcap and midcap INDEX have not reached a point where they wont at all make a meaningfull recovery from here  but it is getting very close to that point!

LEVEL of 15,000 on NIFTY SMALLCAP,100 47,500 on MIDCAP,100 and 10,500 on MIDCPNIFTY are ultimate supports.

A daily close below these levels could further trigger fresh and powerful leg of decline which can further drag these INDICES another 6 to 8%  lower!

TECHNICAL UPDATE ON NIFTY

we were discussing 2 near term supports for NIFTY since MONDAYS close.

1st level was 22,220 and another level was 22,156 on spot.
I was expecting one of these supports to test in todays session!

today NIFTY tested 22,220 and then recovered.
frankly the rally in NIFTY BANK was surprising for me.
that actually had disturbed some equations let’s see how next few sessions goes especially it would be critical to see how BANKS performs!

on NIFTY supports are still the same.
to lift these supports higher NIFTY would require a print of 22,565 on spot.
Once it gets that supports would shift higher to 22,300!

TIME wise 5th and 6th MARCH were very important CYCLE DATES so all stocks and INDICES whether local or global if holds intraday lows of these dates on closing basis are likely to keep the setup sideways to up.

Only a close lower would turn the short term CYCLE trend LOWER!