Technicals for week ending – 7th June 2019.

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. Longer term trend model based on weekly prices is in buy mode and I am holding Niftybees.

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

Chart 3 Longer term intermarket strength as per the RS matrix is in Realty, Banks & Energy. With Pharma and Media at the bottom.

Chart 4 Most of the broader indices are above their respective 40-week MA, while a lot of the sector indices are still below their respective 40-week MA.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -12.3% & -5.9%.