Down trend lacks strength

The ADX indicator reflects the strength of the overall trend. Since red line is going steep bears are taking control but ADX value, i.e. grey line, is still less than 30, which means that downtrend will not be sustained for long. Until and unless ADX value moves up dramatically, bear hug may not last for long.

Nifty @ crucial support

After ending at a three-week low level Nifty is at a crucial trendline support. It has bounced back four times on previous occassions. If it drops below from the current level then it may go down all the way to February low.