Finally bears managed to breach through the defence of the bulls and pegged them back to a much lower level without giving them any opportunity to make a comeback throughout the day. On 14th March we wrote that day's low ( 5813 ) to be an important support level , breach of which is likely to attract bear onslaught. That's what exactly happened today.
Now as we see from the above chart, bulls made a clear retreat and conceded large grounds to bears, Nifty future basically moved into a no trade zone. War is not over yet but battle lines are definitely redrawn. On the downside 5675-5700 area is very important from two perspectives .. A ) Being the recent low from where a 300+ points rally started and B ) also being an important support area in the longer term monthly chart. On the upside 5800-5820 area likely to act as key resistance. Therefore this 100-150 points zone becomes the new battle ground between bulls and bears. Any violation of this zone ( up or down ) to attract swift covering / unwinding and addition of fresh positions. Retail traders are advised to open fresh position ( long or short ) only outside this zone and not to get caught in this fight unaware !
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