The Nifty has now retraced 50 percent of the fall from the January levels; it has retraced 50 percent of that fall. Now 50 to 66 percent retracement normally is a big congestion zone for the market, so the market is right at the beginning of a congestion zone now. Purely from a risk-reward point of view it does not favour a long trade it may work out that's a different thing. But it does not be able to long trade which was the case say about two or three days back.

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Also, the Nifty is trading above all major moving averages, the Bank Nifty perhaps has just some more left in terms of that 50 and 200-day moving average. However, one of the graphics that had played out was the Nifty versus mid-cap, my sense is next few days may belong to mid-caps and small caps.

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

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First Published:Mar 21, 2022 8:31 AM IST