Nifty Weekly
After moving past the prior
resistance zone near 7600, the Nifty index seems to be stuck in a narrow range.
As you can see in the Nifty weekly chart below, few things stand out:
1. The
index is placed below a down sloping trend-line and a down sloping 40 week
moving average.
2. Immediate
support zone seems to be in the 7600 area which are the lows of Sep’15 and Dec’15.
Whether we break past these zones
or not? – well, we will have to see that post the RBI monetary policy meet. BUT there is some evidence which is
pointing to a bullish bias over the next 1-2 weeks and possibly further.
1. On
the weekly chart – Bank Nifty resistance zone is much higher up which gives it
further room on the upside.
2. On
the daily chart the Nifty is stuck between 7800 & 7600. RSI is sustaining
well over 50 for quite some time now. Hence a positive bias.
3. On
the VIX projected range chart we have closed above the upper boundary and max
high looks to be in the area near 8k. (We also have a massive build-up in the
8k strike call option at the start of this series! )
4. Seeing
some improvement in the Nifty/Bond ratio chart as it is sustaining above its 10
week moving average.
5. Auto,
FMCG, Energy & Metal indices are above their respective 40 week moving
average.
Nifty weekly chart :
Bank Nifty weekly chart :
Nifty Daily chart :
Nifty VIX projected range chart :
Nifty/10 year bond ratio chart :
Indices above 40 week moving
average :
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