Sector Technicals for the week ending – 30th November 2014.

This update only has the weekly Nifty technicals, will update the sector indices next week owing to RBI policy.

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 Nifty again closed the week at all-time highs, major sector indices too are in strong uptrends led by the Bank-Nifty. Intermediate and long term supports are in the zone of 8200 and 7800. Momentum wise the 14 period RSI indicator has entered into the overbought zone and can remain overbought provided that the RBI does not surprise on the downside today. The weekly MACD too has signalled a buy signal which is supportive. In the derivatives space FII’s covered short positions in index futures over the week while in the options space they closed positions across the board. Looks likely that the FII’s have reduced their hedges in the options market and remain long in futures in anticipation of a positive announcement. In the options market the 8700 strike call has the highest open interest suggestive of immediate targets in case of a positive outcome by the RBI.