Archive for July, 2010

Bad News – Volumes dry up

31/07/2010

The volumes of FII has depleted, but so has the selling by DIIs:

This is an indicator that the market isn’t sure of which way to grow. It also means that if one or the other starts to change o its own, the Nifty could see wild swings.

The Nifty has been correcting for 5 continuous days – something that’s not happened for a while now.

                                                   

The Nifty may well fall with its own weight. Any bump up can be met with equal downward pressure. That’s uncertainity and markets don’t like that. The Nifty is searching for a trigger for a while now and none are coming.

The slow stocastics is nearing the oversold region. The OBV is high and the MFI is lowering, near its lows. The 25-day SMA provided support last Friday to the Nifty.

Stay away from trades and wait patiently – looking for either signal: Buy or Sell. A breach of 5349 would indicate a continuation of the slide, though with higher volatility.

@niftygroup @jsvasan

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