One pattern that has emerged over a period of time is that the players lose nerves each time the Nifty hits upon the big round figures like 2700-2800-2900-3000.
At and around each of the above levels the Nifty has seen a sharp retracement of between 50 to 100 points.
So there is nothing unusual about whats been going on in the markets recently, coming off the 3000 mark.
The reasons are numerous, like the global markets, surging oil prices, interest rates and what have you.
The one main reason is that the smart money has been smart yet again.
The market movers like the FIIs and our own funds and HNIs have booked profits at every psychological landmark, and other than buying in on a few select counters, have sat back awaiting a pullback to move in again.
And as far as all this goes, it does appear as if they are bracing up for another bout of buying. The spurt in quality midcaps on Friday is a good enough indicator.
When this activity would get underway is not too clear, looking at the international horizon this morning.
Then of course the Ambani brothers are at it again.
So, the picture does appear to a have strong undercurrent but uncertainty prevails on account of the two factors above.
To the levels, the areas of support which have been written here on Thursday and Friday (-2952-2945-2938-2931-2924-2917-) have one by one been tested to the down.
On Friday 2932 had helped arrest the slide, and as the market slips lower the nerves would give faster.
2924 and 2917 are yet to tested. If they are, there are a few other supports at 2914-2908-2905.
Together the supports for now are 2938-2932-2929-2925-2922-2918-2914-2911-2908-2905. The important amongst these are 2932-2922-2914-2908-2905.
To the up, 2944 is important to hold above. Then 2947-2950-2954.
2958-2959 is another vital mark and if held, there would be strength in the market.
Further up then would be 2963-2966-2970-2974.