Markets witnessed a gap down opening22/.2/2010

Markets witnessed a gap down opening, attempted a recovery in the second half of the session which was unsustained, leading the indices to close in the red. On the daily charts, the move which started from 15652 to 16484 / 4675 to 4930 has been retraced by 50% (as shown in the chart). Normally retracement / correction up to 50%of the preceding move, act as a good support. In the coming trading session if indices trade convincingly above 4890 / 16302 levels then it is likely to test 16420 – 16480 / 4910 – 4930 levels. On downside 16024 -15892 / 4800 – 4750 levels may act as support for the day. As the market awaits firm directional clues from the Budget, traders are advised to trade with lighter positions