Saturday, 4 February 2017

Technicals for week ending – 5th February 2017.

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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