Nifty and Nifty Auto index is showing signs of possible medium term trend exhaustion on the weekly timeframe. Also recent surge in global markets volatility is a concern in the medium term. In the last three trading sessions 9500 remains the psychological reference and lot many stops are hunted above and below the reference and now price sustaining below the previous week high 9450 remains the key for sustained weakness in the upcoming trading sessions.
As analysed and shared in previous weekly report the short term trend for market is down and its been a sell on rally since it broke the levels of 8550. This past week nifty future faced extreme selling pressure and closed the week at 8276.90 after making low 8266 just around the closing point of the week. This indicates further bearishness in the markets.
On the weekly charts as per 5EMA high-Low strategy nifty is in sell mode for the past 7 weeks. And the RSI(2) and CCI(4) indicates oversold levels in Nifty Spot Weekly charts. and 5EMA Low at 5824. Nifty closing above 5824 on EOD basis will bring positive bias for the uptrend r