Note : This is not a recommendation and I am not a registered analyst,
these are just data points and an assessment of the positives and negatives
from a longer term point of view.
Nifty Weekly
Bollocks! missed it! … what a
difference the last week of Jan made and now most of the things flip to the
other side.
Observations (Charts below)
1
– I know I am sounding like a broken record but well, Nifty PE ratio now hits
23 and Nifty vs Earnings (indexed) is now in a warning zone as after hitting
100% this has led to corrections (previous tops were in the 107-110% range). Nonetheless.
Momentum rules the day !
2
– On the monthly update (http://indiasectortechnicals.blogspot.ae/2017/02/monthly-update.html)
the moving average based system flipped to buy Nifty while the momentum based
rule is still in bonds so there is a 50/50 split there.
3
– On the weekly, we are above the 40-week moving average & closed above
weekly resistance
4
– The Nifty/Bond ratio for the total return indices has inched up towards its
40-week moving average.
5
– Metals & Energy are still leading in terms of the relative strength ratio
scan.
6
– Nifty Alpha Index is at an all-time high along with Mid & Small cap
indices – Momentum on the buy side.
Chart 1
Chart
2
Chart
3
Chart
4
Chart
5
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