Nifty witnessed a rising channel pattern breakdown on the daily chart. It seems to have completed its throwback and is now trading below its trendline resistance.

The benchmark index on March 31 made a gap down opening tracking weakness in the global markets and closed one percent lower.

The index, on the weekly chart, is locked within a rising channel pattern and is currently trading near the lower band of the rising channel pattern which will act as an important support zone in the weekly interval.

For the last couple of trading sessions, the index has been trading within the 21 & 50-day EMA band and the momentum oscillator RSI (14) is indicating a negative slope.

This technical setup indicates a mixed bias which can lead to a rangebound movement with a spike in volatility.

India VIX seems to have flattened out in the range between 19 and 22 and is currently not producing any significant clues.

The breakdown below 18 level will cool off volatility but the breakout above 23 level will shoot up volatility.