On april fool’s day, we start a new series with a pressing question on whether the move seen in the last half of march would continue to 6040 or we would see a revisit to 5550/ 5650.
We are currently working a balance zone between 5835 and 5880 with an excess both sides being rejected in the past two days.
The resolution of this balance zone will set up the next high probability trades.
Clearly the month of March was different from the past five months as we witnessed a stop in the one time frame movement seen from the start of November.
The current levels which are above 5800 seem to suggest that the downmove has been nullified and we are working our way back up to 6300 levels again.For this to be possible we will have to close out April above 5800 also.
The chart illustrates the buying seen above 5550 levels and continuation above the red line in the second pane will signify more buying interest.
However if 5800 breaks then a 100 point drop to 5700 is on the cards.