Nifty futures has decisively broken the support zone of 5330 on the downside and closed below the mentioned levels. We good also see a good up ward momentum in dollar/inr too and it might be heading towards 52 zone as mentioned earlier but the movement seems to be slow .Though surprisingly we had a low volume it is clearly a lower low in nifty futures. Some short positions got covered in the final hours of the trading session and it shows traders are not very much convinced about the depth of the downward momentum and waiting for a more convincing move after the election results.Ideally on the downside the immediate target could be 5240 levels and any rally could be seen as a short covering rally and the reversal on the upside is only above 5440 levels , the rest of the up move can be treated as a short covering rally. Some of the major stocks like l&t, SBI, ICICI bank and Jindal steel did not recover from the days low and read the movement of these stocks for a better trade on the long or short side in Nifty.In the commodities market copper could not hold to the highs of 430+ and this could hurt the base metals and we could see a reversal only above 435 levels.Our time cycle date of March 20-21 and April 1-10 would be relevant and nifty seems to be moving in the same direction and in March, nifty could give a short term rally to confirm a top close to these dates and thus keep an eye on that too.
