Technicals for week ending – 17th November 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 SAVED from a close below the support band. No change in short term risks – a close below the 10080-10120 band and inability to move above would indicate weakness. Basic super-trend and 40-week MA are in buy mode and near the 9700 zone. I do not want to be holding ETF’s under the 40-week MA. Most stocks seem to be hitting highs as only about 15% of the Nifty 500 stocks are more than 20% away from their 52 week highs.

Chart 2 Nifty total returns/10 year Bond index ratio is above its 40-week MA & momentum also favours Nifty index, indicating longer term outperformance for Nifty vs bonds.

Chart 3 Longer term intermarket strength as per the RS matrix back in Realty & Metals. They are a bit slow to signal so keep in mind the general conditions.

Chart 4 Pharma index is below its 40-week MA.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -4.7% & -3.8%.

Chart 6 FII flows in Index futures segment is flat