Technically the index seems to be finding support at the channel lines broadly.
1100 and 11270 are good supports. If that holds for some more time we can see that attempt to break 11750-11780.
Long term trend change levels at 10900/10500 below which we may review the bullish stance. ( Similar levels for Nifty are 5550/5400 )
Strategy should be to buy around 11270-11200 with stoploss of 11000. A better trade could be on crossing 11780 wth a 200 point stoploss.
For Nifty as we have mentioned before the bullish stance till we maintain 5550 we could be even looking at a strong recovery.
In the short term we could be watching the gap support at 5750 and a move beyond 5970 to confirm a momentum change on upside.
USD – INR remains the major concern for any further reversal. In spite of divergences we have not seen it giving any reversal signals. A move below 59-59.5 would be a confirmation.
Although there is no direct co-relation with Nifty but a breakout in Nifty needs a trend change in USD –INR.
Bank Nifty 11000 - 11780 , Nifty 5750 - 5970 and USD 59-61 are levels to watchout for in coming days.