Intermediate Trend : downtrend still on

The chart on the left shows the nifty between May 2 and Aug 18. 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 downtrend which started on Aug 02 when the sensex topped out at 32,686 (T-2).

The market is not known to have ended its intermediate downtrend, though the strength of this rally makes that a clear possibility. The downtrend began with the sensex’s Aug 2 top of 32,686. The levels above which an intermediate uptrend would be triggered remain the same at 32,400 for the sensex, 10,100 for the nifty, and 18,650 for the nifty midcap 100 index. (All figures have been rounded up to the nearest 25).

Most global indices are in intermediate downtrends, with the Dow also falling into one last night. Brazil’s BOVESPA remains in an uptrend, and has now been joined by Shanghai - which entered an uptrend yesterday.