Sunday, 13 August 2017

Technicals for week ending – 11th August 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 Had written 9700 as a support but to be honest, did not want a visit to 9700 with such ferocity! As for drawing a resistance, now I can finally mark the 10,050 area as potential resistance. 9900 is also a trouble area if looking at the daily chart. Hence, for a short term (1 month) perspective – will look out for a weekly close below 9700/9650 or inability to move past 9900. Have a look at the 2nd chart below to see what is going on under the surface.     


Chart 2 Pharma & Media are below 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 dropped to -8.8% & -4.4%.

Chart 6 FII flows in Index futures segment is net long but a declining trend.

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