Sunday 13 October 2019

Weekly Analysis – 11th October 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 sell/exit mode and I am holding Liquidbees at the moment.  

Chart 2 Nifty total returns/10 year Bond index ratio is BELOW its 40-week MA & momentum has shifted to bonds, both indicating longer term outperformance of bonds vs Nifty. We even have a downward sloping moving average. Though the sample size maybe small but those runaway bull markets have happened with Nifty/Bond ratio above its MA and the slope of the MA also trending upwards.

Chart 3 Longer term intermarket strength as per the RS matrix is in Energy, FMCG & Infra. With Metals and Media at the bottom.

Chart 4 2 of the broader indices are above their respective 40-week MA, and only 3 of the sector indices are above their respective 40-week MA. One can see that Nifty returns have generally been flattish to negative at such readings.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -16% & -12%.



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