TECHNICAL OUTLOOK 19, MARCH

Nifty 3608.55


As long as Nifty sustains above 3550, the short term trend would remain bullish. On the upper side, if Nifty moves above 3720, it would confirm the termination of correction. Since Nifty failed to sustain above 3720, it has opened a possibility of Nifty going below 3550. If that is the case, then a final short term down leg is possible which has maximum downside potential of 3300. A sharp decline below 3550 in one or two trading sessions would indicate further decline. If Nifty fails to move below 3550, a sharp rebound is possible.


In the extreme short term, cross over of either 3550 or 3650 would decide the direction of the short term.

Today, cross over of either 3550 or 3650 would see a one sided move.



Trading Strategy

Remain short as long as Nifty sustains below 3660. Initiate longs above 3680.



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