- Wealth PMS
A very dull day for the Nifty, with just 8,276 cr. traded overall. The Nifty traded just 3,300 cr. today, with volumes being the lowest in about four years. (Thanks again to dshort.com)
Technical note: The market is on a short term support trend line as you can see below in green. In recent times a good trend line was built (since Mid April, Red line) which was confirmed multiple times in May and June.
Confirmation is good. The more a trend line is respected the more it’s useful, when the trendline is broken. A break on big volume, which happened in end June, took the index up another 300 points.
At this point, we’re at another trendline that looks like a good support base. Today’s low volumes are not helpful, but a big volume downday is likely to take the index back towards the extension of the same red line.