The stance on the weekly chart remain unaltered. Nifty have closed in the “D” zone of the Bollinger Bands (which is a SELL signal) and the trend line is most probable support for the Index. The target breaks down t0 9700 levels on this chart.
While the we cannot ignore the fact that RSI is now settling near 40 area (which may act as support) levels for Nifty. Also minor cycles will bottom down between 30th March – 3rd April period. If already short, positions should be trailed at 10270 levels.
On the daily chart Nifty is moving down in a falling channel. On 23rd March a doji appeared followed by a bullish shaven head. This indicated buying interest in the Index.
A good resistance level is placed at 10270 levels. If Nifty manages to close above it, then weekly momentum support and time cycles may come into effect and we may see positives moves in Nifty.
We will have to wait for Nifty to reach 10270 and watch the price action there.
Bharat Jhunjhunwala MFTA, CMT, CFTe, MSTA