Again the trend is continuing, lower highs and lower lows everyday and a retracement from the low levels to close almost near the previous session's close. This has been continuing for nearly four sessions, NIFTY honouring the 200 DMA as the resistance level and testing support levels one by one each day.
Will this trend continue?
This is where my view differs and each day it tests a new support and gains strength, the bullish view gets further strength. The fact remains that the key level of 3256 is not yet broken and majority of the bears are trapped below that level.
Also this consolidation has been with very low volume and most of the heavyweights are taking support at key level (either 20 DMA or 200 DMA) and are ready to move higher.
The fact that the undercurrent is still very much bullish, how long this consolidation phase will continue. This is the important question and the expiry of April series has another 6 trading sessions left including today and the question remains as to whether there will be a breakout either side before this expiry.
My view is still that we might not see a breakout on the downside and NIFTY should not even test 3256 levels for this expiry.
Resistance levels : 3357, 3392, 3415
Support levels : 3304, 3256
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