Nifty broke the two-day losing streak by rising 18 points to close at 14,956 on March 8.
Last week, the benchmark index bounced back after two weeks of correction. But the weekly candlestick shows that the index has closed well off the highs, which indicates that there was selling pressure at the higher levels.
We also observe a negative divergence on the Nifty weekly charts as the index has made a new high, but the 14-week RSI has made a lower top.
In the derivatives segment, FIIs long to short ratio fell to 1.28 level from 3.22 at which we began the March series, indicating FIIs have started reducing their longs in the index futures segment.
Immediate support for the Nifty is placed around 14,800 where we have seen Put writing. Any close below this level would mean that correction could accelerate and Nifty could attempt 14,521-14,600 levels.
If Nifty does not move above 15,250 on any pullback rally, the intermediate downtrend will remain intact.
The short-term trend of the Nifty has turned negative and one should remain cautious till it closes above 15,250.