Sunday 15 March 2020

Weekly Analysis – 15th March 2020


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. Of strategy 1 & 2 based on Nifty TRI, strategy 2 triggered an exit. Bond strategy is still in buy mode and I am holding a 10Y bond fund. Green line is up means buy mode and green line at 0 means exit mode. Portfolio is in a drawdown of almost 12% compared to Nifty ETF drawdown of about 19%.  


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.

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

Chart 4 NONE of the broader indices is above their respective 40-week MA, and NONE of the sector indices is above its respective 40-week MA. Forward returns on Nifty have generally been negative to flattish at these readings.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -28% & -26%.



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