Friday, 27 July 2012

NIFTY Trend Score






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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