Sector Technicals for the week ending – 19th October 2014.

Sector Technicals for the week ending – 19^th October 2014.

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 index closed below the important 7800-7850 zone which was its previous resistance. The short to medium term trend remains down as long as the index closes below this zone on a weekly basis. In the derivatives space, FII’s continue to be net long in index futures and but have decreased their net longs over the previous week while simultaneously increasing their long positions in put options  suggesting some expectations of downside. The India VIX is at 16% and looks like a failed breakdown as it has crept back above its previous lifetime lows of around 13-14%. To conclude – A rising VIX along with a failed breakdown below key levels does not bode well for the markets.