Monday, 6 April 2015

Sector Technicals for the week ending – 5th April 2015.

Nifty Weekly Technical Analysis:

The Nifty made up some of its losses in the last week and is placed around a lot of trendlines and in between supports as shown in the below chart. The MACD indicator is still in sell mode, while the 14 week RSI bounced back above 50. On the flows front, there was marginal net buying in index futures from FII’s – looks like a wait and watch approach. On the derivatives side, the India VIX is just at 13.67% - that seems like a very low level just before an RBI monetary policy meet !! – is the options market signalling continued strength in the market? Though we are still long as the Nifty is above the 40 week moving average, price action wise it STILL looks like we are in for some tough times ahead as we are in a confluence zone of supports and trendlines – The upside will look more convincing once these higher resistance zones are taken out. Also, the Index is above second major support zone of around 8150-8180.



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