From a week to week perspective this was the 1st week where the oscillator turned negative.
For the bulls to have an upper hand this weeks low should not be breached. As of now it is perfectly at the support trend line.
You may note that as of now Nifty atleast on the daily charts has given a weak close.
The support range lies any where between 8475 to 8525
For the upside momentum to continue this range should hold. Break below which can aggravate the selling pressure.
DOLLEX 30- WEEKLY
As mentioned for the past couple of weeks, SENSEX in dollar terms is not showing the same strength as the SENSEX and has not even managed to cross the 61% retracement mark.
Over and above the Dollex, this chart too signals that after 5 back to back positive Nifty close August expiry was the 1st one with a negative close ( red candle)
You may note that this is no indication of a sell off in the offing. It just shows that the markets cooled off in the month of August and that the upside momentum has cooled.
Having remained sideways for the entire month of August 2016 ( F&O Series) the markets on a broader scale has lost the momentum partially. As of now the crux range is 8470-8500 which is also the last significant bottom and 50 days moving average. As long as that level holds Nifty continues to make a higher bottom. A break below it will make us shift our entire focus to the Dollex 30 index.
From NAYAN M. VALA SECURITIES PVT.LTD.RESEARCH
By Dharmesh N. Vala
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