Sup­port crit­i­cal for time to come

Money Times - - Trading On Technicals - By Hi­ten­dra Va­sudeo

Last week, the Sen­sex opened at 31299.52 and main­tained a low of 31298.90, moved to a high of 31937.51 be­fore it closed the week at 31524.68 and thereby showed a rise of 311 points on a week-to-week ba­sis.

Daily On the daily chart the trend is down and clos­ing is below DRV- 31800. The daily chart band is 31937 and an up­side can re­sume only on a rise and close above 31937. Sup­port will be at 31128, 31017-30921 and 30680.

The de­mand zone is at 30965-30680.

In the event of a fall and close below 30600, ex­pect a slide to­wards 29500.

On the up­side a rise and close above 32107 can set a rally to test back the peak and cre­ate new high again.

For the time be­ing, side­ways volatil­ity swing is likely to be wit­nessed be­tween 32107 and 30680.

Weekly The break­down weekly high and low can be crit­i­cal for the near-term-to-short-term. The high and low for 2 weeks is 32396-31128.

The weekly up trend as per WRV is from 13/01/2017 and since then the weekly clos­ing is above WRV. The clos­ing on 13/01/2017 was 27236 and last week ended on 18/08/2017, the trend is still up on WRV ba­sis at 31524.

Monthly Sup­port on monthly chart is at 31017-30680.

Since the en­tire rise of July 2017 has got nul­li­fied in Au­gust 2017 on the monthly chart, the next di­rec­tional move­ment could wit­nessed in Septem­ber 2017 un­less Au­gust ex­tends the range out­side 32672-31017.

On the monthly chart, the Sen­sex is still shows higher low and higher high for the 8th month. A fall and close below July’s low of 31017 can mark a re­ver­sal in the form of a Down­wards Bar Re­ver­sal or the Out Bar on the monthly chart may have to wait for an­other month to show di­rec­tional move­ment. In short, a side­ways move­ment or con­trac­tion of move­ment with volatil­ity is likely to emerge within the de­fined range.

It is the break­down and close above 30680 the ma­jor cause of worry if that hap­pens. Oth­er­wise, mar­ket will con­sol­i­date for some time be­ing once again be­fore launch­ing to a high.

Trend based on Rate of Change (RoC)

Daily chart

1-Day trend - Down

3-Day trend - Up

8-Day trend - Down

Weekly Chart

1-Week trend - Up

3-Week trend - Down

8-Week trend - Up

Monthly Chart

1-Month trend - Down

3-Month trend - Up

8-Month trend - Up

Quar­terly chart

1-Quar­ter trend - Up

3-Quar­ter trend - Up

8-Quar­ter trend - Up

Yearly chart

1-Year trend - Up

3-Year trend - Up

8-Year trend - Up

BSE Mid-Cap In­dex

Weekly Chart

The mixed trend on daily, weekly and monthly charts shows side­ways volatil­ity for time to come.

1-Week trend - Up

3-Week trend - Down

8-Week trend - Up

Next slide is below 14400. Up­side locked to 15200-15700.

BSE Small-cap In­dex

1-Week trend - Up

3-Week trend - Down

8-Week trend - Up

Ex­pect side­ways volatil­ity as long as 14700-14500 is not vi­o­lated. Up­side is locked be­tween 15800-16200.

Strat­egy for the week

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