First, a thank you to Indian bureaucracy.
You saved this country from sub-prime or similar disasters. By remaining convervative in your approach, insisting on a proper regulatory environment, the Reserve Bank has saved this country from the greed of dalal street / investment bankers.
Now for the Market.
The Nifty closed at 3518.65, just 20 points above yesterday's close. This was a setback on a day when most world markets were roaring up. The next few days will tell us if the Nifty is going to underperform or today was just an exception.
For the Nifty, the nearest pivot high is at 4000. An intermediate up trend is possible if the Nifty were to close above 4000. With time, these levels may change. Closer to current market price, we have resistance at 3600. A short term up move will be signalled if the Nifty were to close above 3600.
While the Nifty remains below 3600, it will be locked in a range beetween 3250 and 3600. This means support should come in at the lower end of this range. It also suggests that a breakout above 3600 should see a rally to 3950 - 4000.
Is there a selling opportunity ? Yes, below today's low - 3495, a high risk sell exists with a stop above 3600. The area between 3495 and 3600 is a no trade zone.