Technicals for week ending – 5th January 2018.

Note : This is not a recommendation and I am not a registered analyst, these are just data points and an assessment of the positives and negatives from a longer term point of view.

Nifty Weekly

Chart 1 STILL no change in short term risks, we had multiple tests of the 10080-10120 support band and it held out. Basic trend filter of 40 week MA is still indicative of a long bias. As for discretion, I am unsure of any resistance up here so still leaving the first trouble area at the support band of 10080-120.

Chart 2 Nifty total returns/10 year Bond index ratio is above its 40-week MA & momentum also favours Nifty index, indicating longer term outperformance for Nifty vs bonds.

Chart 3 Longer term intermarket strength as per the RS matrix is in Realty & Metals.

Chart 4 All indices are above their 40-week MA.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -1.7% & -0.3%.

Chart 6 FII flows in Index futures segment is flat to positive AND so is client flows !