On February 1, Nifty formed a bullish inside candle which is also known as Harami candlestick pattern. However, the overall formation still looks weak on the daily charts and it is advisable to remain stock-specific bullish with protective stop losses.

After the recent fall from the highs, Nifty is now trading below its 5, 10 and 20 days EMA. By breaching the crucial support of 14,635, Nifty has also confirmed the bearish formation of lower top and lower bottom on the daily chart.

On February 26, Nifty formed a bearish island reversal pattern on the daily charts. This formation usually leads to a sharp downside post breaking the low of the candle and it has not been breached as of yet.

Nifty is yet to break below the support of 55 days EMA, placed at 14,315 odd levels.

The 55-day EMA acted as a bullish reversal during the correction seen before Budget.

There has also been the support derived from the upward sloping trend-line adjoining the major bottoms since March 2020 bottom on Nifty weekly charts.

The trendline support is currently placed at 14,350 odd levels, which also coincides with the partially filled gap support placed between 14,336 and 14,469.

India VIX has reached above 28, its highest level in the last eight months. VIX index has also started sustaining above its 200 DMA which is a bearish sign for the markets.