Technical view by Nooresh

BSE DOLLEX 30 – Sensex in Dollar Terms is just 6-7% away from December 2011 lows

Dollex 30


Have generally looked into CNX Defty before but for the recent discontinuation of the Index by NSE 


Some really important things to note.


-> The lows of 2300 odd is the number where Index has found support over the last 4 years.


-> Post the election gap up of 2040-2240. The low was around the same price in next dip post elections. ( shown by arrows )


->In December 2011 and June 2012 when Nifty made lows at 4500/4800 and Sensex 15100/15750 which was a bit apart. During the same time Dollex made lows in the band of 2310-2340. This level is where we have seen a sudden reversal in FII buying in last 4 years.


-> At the current levels of 2472 we are just 6-7% away from the multiple lows.


-> So combined move of USD-INR and Sensex/Nifty will take it pretty soon to important support levels. This should hold for the short term but the bigger risk comes if we were to break those 4 year support levels.


-> But it does not matter if you look at Sensex/Nifty they give a different picture from the broader market which is already at 4500/4800 levels and many stocks below 2008 levels also.


So for the short term we might be looking at these zones if they come for a bounce back trade in Nifty / Sensex alongwith a small topping out of USD INR




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Article by Nooresh Merani

Nooresh has written 2531 articles.

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{ 1 comment… add one }
  • jigs August 17, 2013, 17:25

    Good chart. We may see support around 2300 in the next week and as happens every time one more relief rally or pre-election rally will come. But, eventually I am afraid looking at ground economic conditions even Oct 2008 lows of Dollex 30 may be reached around election times of 2014. Only silver lining is – I guess small and midcap indexes may make THE BOTTOM in near future. They are so beaten down even the biggest bear of the world can not take them down any further :-).


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