By closing above the 10208 level on Monday, the Nifty has confirmed higher top and higher bottom formation on the daily charts for the first time since the correction, which started from January 2018\.

The Nifty has also given a breakout from small bullish Inverse head and shoulder on the daily charts. The target for this pattern comes at 10500 odd levels. The Nifty also managed to close above its 200-day SMA which is currently placed at 10183 level.

Moreover, Nifty has already witnessed a fall of almost 11 percent from the all-time high of 11171 registered in January 2018 to the recent bottom of 9951\.

The Nifty Midcap and Smallcap indices plunged 16% and 21% respectively from the all-time high to recent low. Many stocks have seen a fall of than 40% from their 3-month’s high.

Few oscillators like RSI and KST have formed positive divergence. This means price levels were making lower bottoms and oscillators were making higher bottoms, indicating that dominance of bears is gradually going down.

Moreover, many stocks from midcap and small-cap segment look extremely oversold on charts and pullback from these levels is expected to continue.

From the derivative side, we are starting the April series with lower Stock Futures’ Open Interest (Four month Low) which in turn indicates lower leveraged positions, which Augurs well for the markets for the days to come.

Amongst the Options, Highest put writing is seen at 10000 level indicating 10000 level to act as a strong support for the coming days.

Considering the evidence discussed above, our advice would be to accumulate long positions with the stop loss of 10000 levels with a target of 10500 levels.