Nifty is very close to the 200 DMA at 4640 levels.
It will be a good spot to book shorts and consider a few longs.
A failure to touch the level today, would mean that the Nifty will have to visit again.
Generally according to the moving average rule, a break of 20 DMA should bring the 50 DMA, break of 50 should bring the 100 and a break of 100 DMA should bring the 200 DMA.
So a touch of 200 DMA is very neccessary as we have sustained below all the moving avaerages mentioned.
If we trade below the 200 DMA for 3 consecutive days, it would put the bears in business and the trend bearish for the Intermediate term.
Vtrender.
