Half Hourly Chart
Intraday oscillators were oversold and I expected a short term support which came in the very first few minutes of trade at 4372.
- The upmove today lacked momentum and was very much a reaction to the previous day's fall.
- On Balance Volume, which measures negative and positive volume flow, has moved lower than the Nifty, having already reached levels it had reached on 13th July when the Nifty made a bottom at 3918. This indicates that Nifty could follow and move lower. This follows the technical analysis concept that volume precedes price.
- Daily Oscillators are weak but not reached oversold levels indicating the Nifty could move lower.
- Half hourly oscillators, barring the stochastics, have moved up from oversold levels but not reached overbought levels. Stochastics has turned up agin after giveng a sell from overbought region. So there are chances of some more upmove.
- The 5dema is below the 10 dema and 20 dema indicating short term bearishness.
Though most indicators are indicating a weak Nifty, Nifty is near strong multiple supports around the 4325 levels. Trade shorts with strict stop losses.
Happy Trading !!