Nifty witnessed another day of selling pressure today. The stock closed at 5725 and found support at 200 DMA today. It will be interesting to see if Nifty takes suport at this level tomorrow or moves down further. The weekly chart below suggests down move.
Nifty has been moving in a channel at weekly level and is likely to follow the trend this week as well. This means more selling pressure will be seen. The AD line below further reinforces this belief.
The Accumulation Distribution Line or AD Line is a volume-based indicator designed to measure the cumulative flow of money into and out of a security. A downtrend in the Accumulation Distribution Line suggests underlying selling pressure that could foreshadow a bearish reversal on the price chart. The AD line has again started to move down. The market is witnessing more outflows at the moment.