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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