Buying support still dominates despite the marginally lower close yesterday. The index managed to stay above the 1,630-pt level, continuing the upward bias since the hint of buying from last Friday's candle and consequently, keeping selling activity that took over since the failed test of the 1,650-pt resistance level two weeks ago in the back seat. The index is comfortably above both the 50-day MAV line and the rising 200-day MAV line, supported by the longer-term positive 'Golden Cross' that emerged in February.

Thus, the index is expected to continue higher today and again, a firm buying support should not see it closing below 1,630 pts. Immediate resistance remains at Tuesday's high of 1,635 pts, the level it failed to close above yesterday, and is followed by 23 July's high of 1,645 pts. Again, a break of the psychological 1,650 pts (tested twice last week) is required to cancel late July's negative bias. However, a failure to hold above 1,630 pts suggests that the weakness seen last week may resume, confirmed by a close below 12 July's low of 1,623 pts that it failed to break last Thursday and Friday. Further support is at 1,614 pts, followed by 5 July's low of 1,610 pts. Stronger support remains just above the 1,600-pt psychological level, at the three-week low of 1,602.50 pts.