Technicals for week ending – 2nd June 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

Chart 1 Nifty is in all time high territory and in this zone there is nothing to the left side of the chart so no point trying to estimate any resistance zones here. For the longer term, major support is still the previous all time high zone of 8900-9000 and now higher support looks to be the 9250-9280 area as that zone is the highs of the consolidation after the breakout.

Chart 2 Nifty & all indices except Pharma are above their 40-week MA.

Chart 3 Nifty total returns-Bond ratio is above its 40-week MA.

Chart 4 Longer term intermarket strength is in FMCG & Realty. Had published a write up on Auto underperforming and Energy outperforming – well as per the matrix those seem to have reversed now. FMCG in on the top spot now – to be honest – strange to see FMCG ranking higher in relative terms when Nifty is at all-time highs. Possible warning sign?

Chart 5 Avg. & Median distance of all sectors from their 52 week closing highs is at -5.7% & -4.8%.