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
Before we get into the data let
me just sum up how I feel right now :
Chart 1 Nifty is still in all-time
high territory so no point trying to predict a resistance zone. The weekly bar
seems a bit concerning but would rather see if we fall to lower support at 9700
and how we react there. Also, we are seeing a bit of an uptick in the number of
stocks that are now more than 20% from their 52 week highs – If Nifty
consolidates or rises and we see an uptick in that figure that would warrant
more caution or lightening up on long exposure. My stops for the longer term
trend as always is the 40 week MA.
Chart 2 Nifty & all indices
except Pharma & IT are above their 40-week MA.
Chart
3 Nifty total returns-Bond ratio is above its 40-week MA indicating longer term
outperformance for Nifty vs bonds.
Chart
4 Longer term intermarket strength is in Realty & Bank-Nifty.
Chart
5 Avg. & Median distance of all sectors from their 52 week closing highs
improved this week and is at -3.7% & 0%.
