Sunday, 7 February 2016

Technicals for week ending – 7th February 2016.

Nifty Weekly

Still, the primary longer term trend still remains down for me as the Nifty index is below its 40 week moving average. On the weekly charts, the Nifty broke its support of around 7600 a month ago and closed below the blue shaded region for 4 weeks in a row now. Similar pattern was seen on the Bank Nifty which has the highest weightage in the Nifty index. For a longer term bull trend to begin shaping up, would like to see the Nifty and the Banking index close and sustain above the resistance zones (blue shaded regions). Also, the weekly relative strength charts (http://goo.gl/3MmshX) are seeing a deterioration across the broader as well as sector indices, only the defensive FMCG, IT & Pharma indices RS ratios are holding up relative to the Nifty, indicating that the selling is spreading to the broader indices now.

The Nifty/bond ratio is still in bonds since a long time now.





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