As expected the Nifty continued the downtrend retracing 38.2% of the rise from 4786 to 6338.The fall has gone below 61.8% retracement level of the rise from 5690 to 6069 increasing the chances of testing and even falling below the last low of 5690.
Breadth was extremely poor. Daily oscillators continue to be weak and Macd is once again in a sell mode.All demas 5,10,20 &50, are now in bearish alignment, with the 20 dema crossing below the 50 dema today.
The next strong support of 50% fibo level of the rise from 4786 to 6338 is at 5562.The 200 dema is placed at 5561.A close below 5782 will give a break down from the uptrendline from March 2009 lows on weekly charts.
Resistance is now at 5820-5870-5910 Supports are at 5723-5690-5670-5562.
Happy Trading !!