As shared in our previous weekly report nifty future break down after the channel was broken and trend continued in favor of bears. The march series has been what the most bears had been waiting from so many months. A complete correction with added volume and deeper cuts with no respite for bulls at any levels. A cut of 358 points on spot was witnessed in March FnO Expiry week.
One by one every support was broken and all technical indicators which indicated a oversold market continued to remain in that zone but the selling pressure was not stopped. All small bounces were sold into and a selling climax indicated below 100 Dma happened on thursday trading session.
Nifty spot made the low of 8269.15 for the week. Daily charts for nifty are showing bears in full power and there is no decent short-term support till 8170 which is 200 DMA for markets and any meaningful bounce if happens this will be the sweet spot for many trend followers to enter.
below 8170 next strong supports are 8100-8050 spot. On upside the hurdle is at 8550 zone and a daily or weekly close above this level will be first sign of bulls coming back though this pullback further will have next series of resistance at 8600 and 8700 (trend line resistance) which can clearly be seen from the chart above.
Till nifty future do not sustain 8550 spot, the possibility of bears using rallies to short is higher. When in doubt stay out is the best possible option for traders who have no position yet in nifty future.
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