March seasonality has a good track record for Nifty. We have had seven
signals since 2003 March. Barring Mar 2004, every March has brought in a
reversal of multi week or multi month degree. Multi week or multi month is
what traders live for. Now we are in March again. If the March seasonality
is to be understood, it brings a reversal. A sideways movement is also a
reversal.

The previous trend from Jan was negative and brought Nifty lower by around
1000 points (15%). Now March seasonality has arrested the previous down
trend. This is a reversal too. This was anticipated in our bounce back case
in 'The Sensex Projection'. We think that the bounce back case is still
unfolding up till 5,600-5,700 levels.

The quality of the bounce seems corrective at this stage and suggests a
lower resolution after the countertrend move is over in the final week of
March. After which the next down leg sub 5,000 to 4,700 should begin.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research