Monday, 13 July 2015

Sector Technicals for the week ending – 12th July 2015.

Nifty Weekly Technical Analysis:

Been a while since I wrote the weekly but last time I wrote “for a longer term move higher would like to see prices sustain above 8500 and some improvement in MACD and RSI indicators.” OK, so far this played out well as 8500 did act like a big resistance. Seeing the last week’s candle on the weekly charts, looks like the sellers totally dominated. On the indicators front, MACD<0 and still in sell mode BUT improving. RSI just a tad above 50. So, combining all this, the conclusion still remains the same as before. For a longer term uptrend need price sustaining above 8500, MACD>0 and RSI staying above 50 for a bit. India VIX is at 17% which still indicating that the options market is pricing in higher volatility ahead and FII’s though net long have reduced net long position over the week.

Weekly charts :



Sector Technicals:

CNX Midcap and Smallcap: Technically both indices are just at their resistance levels, if they manage to sustain above resistance, this could be positive for the market overall and Nifty. For the coming weeks price action in these 2 indices should be watched carefully



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