Hi All, sorry for the late update but been a little busy over the weekend with some personal work. This weeks update just has the Nifty weekly technical analysis along with the update sector scan table.
The below table is just a scan
that I run to check the overall trend of an index and its performance vs. the
benchmark Nifty. For further information please read the signal description and
the detailed sector technical analysis further below. For more information on
relative strength please click on the Relative Strength section above.
Nifty Weekly Technical Analysis:
The 7850 zone proved to be a good
support zone yet again last week - 2 weeks in a row now that we have bounced
back from those levels. Momentum reading as per the 14 week RSI has cooled off
from the overbought zone and the MACD has triggered a sell. A weekly close
below supports of 7850 along with a weakening RSI would be the first red-flag.
So far, price action suggests the index can move in a range with supports at
7850-7950 and resistance in the 8150-8200 zones. In the derivatives space,
FII’s continue to be net long in index futures and have increased their net
longs over the previous week while simultaneously increasing their long
positions in put options (this has happened 3 weeks in a row now) suggesting
some hedging activity indicative of a moderately bullish to range-bound trading
view. Though the India VIX saw a bit of a rise, but it is still in its teens
and does not reflect any build-up of risk of downside at the moment.
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