With the Nifty testing its downside support of 5,450, and down for the ninth straight day on Thursday, the index seems now overdue for a bounce back. As per Fibonacci, in most cases any particular trend tends to reverse on the 4-8-10th trading day. Friday is the tenth trading day in the current down trend. Also, if one were to draw a trend line support from the twin-lows of February, which were 5,178 and 5,232, on February 11 and February 25, respectively, then it gives us support of 5,440 or so, which is precisely the low on Thursday. Hence, it now becomes more crucial for the markets to bounce from current levels, or we could slip further down towards 5,350 - the March 21 lows. Select momentum indicators are just about hitting oversold zone, but worry on the negative side, is that the Nifty continues to drift below its lower end of the Bollinger Band. In other words, the index needs to close above 5,530 on Friday, for a sustained bounce to follow
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