Monday, 25 August 2014

Update for the week ending – 24th August 2014.

The below table are just scans that I run to check the overall trend of an index and its performance vs. the benchmark Nifty. For further information please read the detailed analysis below and for more information on relative strength please click on the Relative Strength section above.



Nifty Weekly Technical Analysis:
The index saw a breakout of its previous highs and if it manages a weekly close above the previous high of around 7850 levels then we could see a sustained rally higher. In the derivatives space, FII’s are net long in index futures by more than 100,000 contracts and are also net long in call options suggesting a bullish bias. The major support zone is 7400-7500 for the medium term.  

Sector Technicals:
The Auto, Banking, Pharma and IT indices saw fresh break-outs during the week and look likely to rally further, price action and momentum readings are supportive of this while outperformance of the IT index is still suspect as the RS line is below its 40 week MA.
FMCG is still struggling at resistance and is a relative underperformer vs the Nifty while Metal, Infra and Energy indices are trading above short term supports. The Realty index looks the weakest as its trading below important supports.




















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