After logging gains for three consecutive sessions, the Indian market witnessed profit-booking on March 27 and Nifty gave away all the gains after facing stiff resistance at 9,000-mark.
Nifty is making higher top higher bottom on intraday charts. As long as the index holds above 8,000, we can expect the positive momentum to continue towards 9,350 than 9,500.
However, the broader structure still looks weak and one should refrain from creating any aggressive long positions.
We have already seen a strong pullback from lower levels, so risk and reward are not in favour of the longs. Although, we are expecting pullback which is unlikely to sustain at higher levels and we may see another leg on the downside once this pullback gets over.
The immediate support is now placed at 8,300 and below that, the index may again slip towards 8,000 levels.
The volatility index India VIX fell for the third consecutive session and it ended near 71 levels; now it has to fall below 50 levels to give comfort to the bulls.
Bank Nifty underperformed Nifty in the previous week and remained under pressure. The immediate resistance is placed at 22,500 levels. Immediate support is pegged at 18,600 and below that, it may drift to 17,500 levels.