Technicals for week ending – 16th November 2018.

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. Longer term trend model based on weekly prices is sitting in cash. I am holding liquidbees ETF now. The India 10 year bond total return index is still in an uptrend.

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

Chart 3 Longer term intermarket strength as per the RS matrix is in IT, Pharma & FMCG. With Realty and Media at the bottom.

Chart 4 Damage in other indices as most are below their respective 40-week MA.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -18% & -15%.

Chart 6 CLI flows in Index futures segment is positive and FII’s remain net short.