It looks like end of the day bears are slowly beginning to take upperhand. The correction of 3.5% almost split across two sessions doesnt seem to be a big blow, but is certainly slow poison for the bulls and it will take sometime for bulls to realize that.
By that time bears will be placed comforatably and will then go for the big blow of 5% or more down move in a single day that is anticipated to happen sometime early this week.
Yesterday's pattern looks completely bearish with powerful bull traps seen at 3620 levels. This indicates that this market might have lost all its steam to move up and even an upmove till 3630 level is a remote possibility.
3595 is also established as a good resistance area. Also the much awaited 3565 level was breached yesterday and the close was also below that.
All this points to accumulating shorts at higher levels of 3585, 3600 and if at all this market reaches 3630.
A break of 3520 would signify the start of the downtrend and will take NIFTY to 3485, 3424 and 3365 levels.
Resistance levels : 3585, 3605, 3625
Support levels : 3520, 3485, 3424
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