The big takeaway is that the Indian market is witnessing some kind of decoupling. SGX Nifty is off the lows of the day. The China situation is benefitting Indian market both in terms of industry and in terms of foreign institutional investor (FII) data. So the first dip normally gets bought. It is the second dip that one needs to keep an eye on.

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Trade setup for March 15: Nifty crosses key hurdle but can it hold course? Market cues, technical signals and levels to track

Just like the 20-day moving average (DMA) was the resistance on the way up, now it is a support. So the risk reward is very simple. The 20-DMA right now is 16,741. If the market gives a dip and is still above 16,741, that becomes the reference point for all the long trades.

Also, there is a clear sign of selling exhaustion in the FII data.

Watch the accompanying video of CNBC-TV18’s Anuj Singhal for more details.

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