Nifty Weekly Technical Analysis:
The Nifty managed to close well above
prior resistance of 8500 and now is just a tad bit under its December’14 highs.
The setup seems to be bullish at the moment since we have breakouts on the CNX
Mid and small cap indices as well. On the Nifty, some basic indicators that I
like and follow are showing a bullish reading too. Weekly close>40 week MA,
MACD buy signal, MACD>0 and RSI>50 have been good indications of a longer
term uptrend in the past. Will it repeat this time? Only time will tell J . On the derivatives
side, there has been massive put writing during the entire week pushing the VIX
below 15%- indicative of a positive bias. FII’s are positioned bullishly at the
moment with a week on week increase long index futures as well as call options.
Weekly charts :
Sector Technicals:
CNX Midcap and Smallcap: Both indices broke past their resistance
zones and on the technical parameters mentioned above, seem to be well placed
for a further uptrend. The uptrending RS lines of these indices suggest no
panic/selling at the moment, usually the RS lines of mid and small cap move
down in bear markets.
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