Outlook (Wednesday) : Stocks may improve again today

European markets declined with fairly heavy losses again last night, while the US indices improved with small to moderate gains. Most Asian markets are up this morning with small to moderate gains. However, the SGX Nifty was down 35 points a before our open.

Our market rallied smartly yesterday, and is fairly likely to improve further today with Asian stocks in the green.

Intermediate Trend : uptrend still on

The chart on the left shows the nifty between March 2 and June 30. The points marked "T" are intermediate tops, while those marked "B" are intermediate bottoms.

The dashed line in the centre of the chart is the 200-day moving average of the nifty.

The sensex is in an intermediate uptrend which started on June 12 when the index bottomed out at 26,307 (B-22)

Long-term Trend : being tested

The chart on the left shows the sensex between March 2 and June 30. The points marked "T" are intermediate tops, while those marked "B" are intermediate bottoms. 

The dashed line in the centre of the chart is the 200-day moving average of the sensex.

Our long-term (major) trend is being tested, as the sensex and nifty have falling intermediate tops and bottoms, and are below their 200-day moving averages again.

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