Nifty Weekly
Still, the primary longer term trend still remains down for me as
the Nifty index is below its 40 week moving average. On the weekly charts, the
breadth remains negative as all 9 broader indices and 10 sector indices remain
below their 40 week moving average. The weekly relative strength charts (http://goo.gl/3MmshX) saw a deterioration
across the broader indices as the RS ratios are not holding up well relative to
the Nifty, indicating that the selling is spreading to the broader indices. The
Nifty/bond ratio is still indicating strength in bonds since a long time now.
On
a shorter time-frame the Bank-Nifty is close to important supports around 13,300 which is the
previous life time highs the index made in years 2011 & 2013. Odds favor a
bounce from these levels and given the higher weight-age of banks in the Nifty,
this could lead to an uptick in the Nifty as well.
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