Nifty analysis - "Range of 4,500-4,900"

Market sentiment has been extremely bearish over the last couple of months. From the highs of 6,350, the Nifty has been on a steady downtrend breaching the crucial 200-day moving average. However, it found support at its 350-day moving average. In the last two months, it has made several attempts to cross above 61.8% retracement levels of 5,460, which has acted as a strong resistance for the Nifty.

Failing to do so, it fell below 38.2% retracement levels of 4,900 bringing the index lower towards the important support levels of 4,506. On the downside, 4,400 lends strong support. The Nifty will face resistance around the high of 5,019, hit on
12th March, 2008. It has to break above this level in order to reverse its downtrend.

Till then, we could see Nifty moving in the range of 4,500-4,900.