Indian markets Technical positions are as follows:-
1- Not trending.
2- range bound between 5200-5600 for the last 32 sesions.
3- Long term trenf confirm down.
4- Intermediate term and Short term trends are side ways.
5- Resistance with double top and ronding tops formations near 5600
6- Two times support near 5200 in last 32 sessions.
7- Strong support at 5400 and Nifty survived above it last week when adverse news flow was at its peak.
Indian markets are range bound and discounting all the adverse news within 5200-5600. Confirmation of peace in Libya and finishing of Nuclear radiaion risk in Japan will pave the way of moves above 5600 and worsening of situations will lead below 5400/5200. As sentiment was extremely depressed yesterday therefore sharp recovery and short covering rally seen yesterday and such volatlity will always be seen therefore cautious approach should be adopted.
Asian markets crsahing today morning and all are 1.5% to 3% down therefore whole day Red zone trading will be seen. Sharp surges like yesterday should not be expected because most of the shorts would have been covered yesterday. Some buying was seen between 5410-5450 in last 2 sessions therefore trading within this range expected today after weak opening. Asian markets are extremely depressed today morning and its negative impact will also be seen on Indian markets today.
Gap down opening and Watch 5400 in most depressing mood and if Nifty sustaind below 5400 then expect 5200 fast.