NIFTY losing upward momentum

NIFTY has tested the key resistance of 3450 and 3500 levels but could not able to stay above these levels, and facing stiff resistance from bears. The next 3 days are very crucial. If nifty fails to stay above 3307, 3290 levels we may see an intermittent downtrend, which can bring down the nifty towards 3000 levels. Any upward movement need support from Sterlite, Maruti, TCS, Infy, ONGC, M&M, which are already in bearish mode. The core supporter for the NIFTY is Reliance Industries, which may fall after the quarterly results, which is stated to announce on 23^rd of April. US Dow Jones moved very close to its key resistance of 8200 levels, but failed to cross this level. In the domestic market the PC ratio of NIFTY stood above 1.5 supporting by put holders. As the market opened with downside gap these put buyers used to sell puts at a profit which will lift the sentiment into positive. During April expiry we don’t see much of a panic situation, but we can expect, may be in the beginning of May contract, where we would get a lot of exit poll results, which can hamper market sentiments. Investors are advised to reduce positions; fresh buy can be initiated if NIFTY closes above 3500 for at least 2 days. If that happens NIFTY can test 3650 and 3900, which may become a realty after the election results.