Nifty Weekly Chart Analysis: 08Aug2015

nifty-weekly-chart-08aug2015

After a major rally in 2014, Nifty has been correcting for most of the time in the year 2015. Many indicators have been indicating sell signals. However, we must remember that Nifty is strong as long as it stays above its 200 Day Simple Moving Average (SMA), which is currently at 8440. Even from the above Nifty weekly chart, we can observe that Nifty has buying support at 8400 level, which can manifest itself through a bounce from any level between 8350-8450. With that as the support, Nifty can retest 8750-8800 level in the coming weeks. Btw, Nifty Valuation (P/E) is currently at 23.61, which is above historical averages of about 18-20, so any upside is capped by valuation reaching expensive levels. Nifty earnings have to increase. No way out otherwise!

Comments are closed.