The boundaries of yesterday’s low and high marked an important level in many global markets. On Sensex/Nifty yesterday’s low is of significance. It was not just a ‘hammer’ pattern – the low also came of an important trendline.

Nifty - Daily Charts

The trendline is more perfect if drawn on the Sensex, we can connect the lows of March 2009  through these significant lows. A close below yesterday’s low can make things turn nasty and that makes yesterday’s low a must hold.