Nifty daily chart below portrays a slighly negative picture for the short term. RSI is almost into the neutral territory with some negative divergence and ROC is already in the negative zone. But the 50days and 100days moving averages are still rising, implying that there is no serious signal for medium or long term propects. The broadening wedge mentioned last week was breached on the downside, indicating that this index could remain sideways over the next few days, though between a broad range of between 4700 and 4000. (Also synchronize with BSE outlook in the post below)
50-100-200days SMA’s could be used as sell/buy levels.
50days SMA around 3950 could lend strong support in the event of a correction. Further, the Medium term turns negative only on a close below 3870 and Long term uptrend would be threatened on a close below 3760.
