A rising market on diminshing volumes !!

Looking at the weekly charts of Nifty, for a macro picture of the stock markets, it seems like Nifty is moving in rising channels of varying degrees.

Momentum indicators looking positive, individually stocks are giving break-outs with heavy volumes to support, all hunky-dory so far.

But, a closer look at the volumes on Nifty indicate a continuous decline. Hence, here we have "A rising market on diminshing volumes !!!!"

Studying past 10 yrs data of the weekly charts of Nifty, it can be concluded that higher the volumes, bigger is the gain on the index, or vice-versa, the higher the decline in volumes, the bigger the loss.

So far, my eye could not detect any mismatch in this relation between the volumes and index. It has always followed the rule of gaining on rising volumes and losing value on diminishing volumes.

Coming back to near-term, Nifty has strong mutiple resistances coming up at 5250-5365-5440. With the trend of diminishing volumes, I wonder if Nifty will manage to breach all or even sustain the existing !!

Trade Safe !!




Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.