Monday, 11 January 2016

Technicals for week ending – 10th January 2016.

Nifty Weekly

The primary longer term trend still remains down for me as the Nifty index is below its 40 week moving average. Although on the weekly charts we are near supports that were mentioned in the last weekly in December and we got a good bounce from there. This time though, going as per the SGX the Nifty is likely to open below this support zone. Since this is a weekly chart it is important to see if we get a Friday close above or below this support zone, which can set the tone for the shorter term.

There is a similar structure in the Bank-nifty & broader indices of Nifty 100,200 & 500 & the Nifty/Bond ratio has been telling us that bonds would be a better performer than Nifty since April 2015…..and now this ratio has fallen below 18 and is back to the levels seen before the election rally. 




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