You might be laughing reading the heading that its GAAR and not NAAR. By NAAR i mean “NIFTY Accepted- Avoidance Rule”. This is to say because since the GAAR has been implemented, it was expected that market will see some sell-off but instead we have seen a rally of almost 5% on the index. This explain that NIFTY investors has accepted GAAR and have discounted the new well before. I do agree with it but you may find something interesting on the chart. Notice the downside channel. Today nifty has topped exactly at the resistance line and have closed with a Perfect Doji indicating that we may see some downside, if NIFTY cannot close above 5380 for nxt 3 sessions. This month is full of fundamental news with RBI policy on 14th, Parliamentary session on 23rd and Earning announcement. Technically Speaking we have seen a strong bounce back from 200 SMA (white line) on NIFTY. But you could notice that last rally has added 2 more gaps suggesting that NIFTY has to come back to that level if not in near term than may be some time in future. We could notice that short term moving averages (blue,green and Yellow) are near to 5285 which is also a important support level. NIFTY has rallied but none of the indicator which i study has confirmed the bull rally yet. Watching the events to follow this month it is expected that we may see a strong rally on either side from current levels. Strategy as per the chart would be going short at Current levels with a stop loss of 5420 on closing basis with tgts of 5285/5140/5050 4950-5050 is an important level to see because its the point where two lines of different valid channels are converging. And if the stop loss hits than you may go long above 5490 (closing basis).