Nifty Index updated on 11 August 06

These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.

As suggested yesterday, there was a minor correction in the Nifty. The immediate earlier top, which had been exerting resistance, was retested today, and the Nifty managed to stay above it. On today’s chart, I have also marked out a previous supply zone, where the Nifty has earlier paused. It was on 26 May, that the Nifty has made an hourly top of 3277.60. That is one of the reasons that it is faltering again and again at these levels.

While scrolling through the individual charts of the Index’s components, we see the banks, auto, petroleum and some pharma stocks showing weakness, while some other heavyweight stocks seem to be taking over the mantle of strength.

With that in mind, we could be prepared for a choppy week ahead, especially with an intervening holiday on Tuesday.