Break of 16800 is very negative for Nifty

We are maintaining bearish bias for last many days and for all the right reason. Markets are selling off, with heavyweights like HDFC twins falling sharply. Nifty hit the target of 16900 and moved below that but managed to close above.

Now 17200 is likely to act as strong resistance and Nifty needs to move and stay above for longs. Below 16800 is crucial. If Nifty starts trading below yesterday's lows, it will again signal heavy selloff.

Till this storm settles, do not trade in anticipation.