Saturday, 21 April 2018

Technicals for week ending – 20th April 2018.


Note : This is not a recommendation and I am not a registered analyst, these are just data points and an assesment of the positives and negatives from a longer term point of view.

Nifty Weekly

Chart 1. Longer term trend model based on weekly prices is long, (I uploaded an image of its past signals on twitter). Hence, I am holding on to my ETF. As for the discretionary side, there is a lot of work needed to be done given that trendline and support zones (basically a sandwich here!) – PS: I don’t believe in trendlines and patterns much!

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 is in IT, Media & FMCG. With Banking, Energy and Pharma at the bottom.

Chart 4 Majority of indices are above their 40-week MA.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -7.2% & -7.1%.

Chart 6 FII flows in Index futures segment is negative.


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