Nifty(5046): The market is pausing around the resistance of 5065-70 ahead of economic policy. An important signal is coming from the Banknifty – a “gravestone doji” on this index right at the ideal zone of 9500-9800.
Bank Nifty - Daily Charts
Gravestone Doji are important signals but they need an immediate follow through. We need to see a sell off in Banknifty today too. If it comes through this rally is over.
Indiavix too saw a spike down to 18 day before yesterday. The spike was the lowest level since July of 2011. So there is a good possibility that we have seen complacency extreme for the short-term.
Nifty Resistance: 5065-70, 5100 and 5135. Nifty support: 4980.