"Below 4909 the fall will gain momentum" and Nifty did just that. Slid 51% of the recent rise to 4806 ever so easily. But, found good support and did a U turn to recover 40% of the fall from 5091.Oscillators on daily and weekly have not shown much strength during the rally from 4538.This supports the view that the fall from 5182 may have resumed.
The market is now in a range between 5181-4538. A move beyond these points these points will give momentum to the market.
The short term trend is down till the gap shown on the sensex chart is filled and the recent top made at 17290/ 5138 is taken out.
Strong support on weekly charts at 4700.
Monthly Nifty Chart
Monthly charts show clearly that the downtrendline form January lows is proving strong resistance. Also the uptrendline from March lows has been broken. The range between 4538-5182 has been held for 3 months in a row. Breakout from this range can give a up or down move of around 600 points.
Upsides if trades above 5011
Downsides if trades below 4863
Happy Trading !!