Nilesh points out that today was an NR7 day for the Nifty if Saturday's truncated session is ignored. He says that the dollar index is moving up, which taken with an NR7 should lead to a big move on the downside.
My Notes: NR7 days are signals of indecision. The market is undecided on it's next course of action. Since any active market cannot be undecided for long, an NR7 actually tells us that a big move may be coming which will emerge when strong hands decide on a direction.
But, how can we say that the big move will be on the downside. It can well be so, but we cannot say this. We have to let the market tell us where it wants to go. If the Nifty were to break below today's low, we will probably see a downtrend of sorts. Here also, there is A caveat. Tomorrow is Infy results and this could lead to short term choppiness. The break we a talking about should come after markets stabilize, post results.