Nifty Weekly Technical Analysis:
On the weekly timeframe the Nifty
has broken through multiple supports and that too with a gap around 8150-8200
zone. Well, there are many calling for a bottom but from my readings looks like
this sideways-downward bias move might last longer. So on the weekly timeframe we have :
1. Flattish 40 week moving average – could possibly
signal that Nifty could be stuck in a range & be listless over next few
months.
2. MACD<0 & RSI < 50 – This combination
has not been good for the markets in previous instances & RSI has broken
below 40 too. Also, still no evidence of RSI divergence on the weekly charts. So
it feels like we may be in for a protracted listless market.
3. In relative terms the Nifty/Bond ratio has been in favour of bonds since April & this
ration has broken below its 2010 highs.
On the Monthly chart – the index has closed below its 10 month SMA and
MACD is in sell mode. These readings have not been good news for the markets in
the past, agree that the sample size is small but better to be on the backfoot
here !
Thanks for reading J
Weekly charts :
Monthly
charts :
No comments:
Post a Comment