NIFTY (Last: 5043.00, down 66.60 points)
Yesterday, NIFTY went below 5100 support to close the day at
5043. A couple of days ago, the Index confirmed short term downtrend and
yesterday it signaled the long term downward trend as the 2 weeks moving
average closed below 52weeks moving average. A follow through action is
required to confirm this development otherwise probability of this signal
fizzling out is very high.
Major components of the NIFTY are showing mixed picture. The
trending profile of BANKNIFTY, the biggest sector in NIFTY, is in better shape
while CNXIT is losing ground by the day. In my view, a lot is dependant on the
BANKNIFTY. Expect some positive movement in NIFTY if BANKNIFTY trends higher
otherwise possibility of NIFTY digging deeper levels is very high. (See charts
of all indices above for details)
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