Nifty Weekly
Still, the primary longer term trend still remains down for me as
the Nifty index is below its 40 week moving average. On the weekly charts, the
Nifty broke its support of around 7600 a month ago and closed below the blue
shaded region for 4 weeks in a row now. Similar pattern was seen on the Bank
Nifty which has the highest weightage in the Nifty index. For a longer term
bull trend to begin shaping up, would like to see the Nifty and the Banking
index close and sustain above the resistance zones (blue shaded regions). Also,
the weekly relative strength charts (http://goo.gl/3MmshX)
are seeing a deterioration across the broader as well as sector indices, only
the defensive FMCG, IT & Pharma indices RS ratios are holding up relative
to the Nifty, indicating that the selling is spreading to the broader indices
now.
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