Sunday, 3 November 2019

Weekly Analysis – 03rd November 2019.


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 in sell/exit mode and I am holding Liquidbees at the moment. However, I will no longer be following this model..it is now time to retire this model and implement something new and evolve. Within the next 1 to 2 weeks will be running 3 longer term systems – 2 different systems on Nifty and 1 system on 10-year bond index.

Chart 2 Nifty total returns/10 year Bond index ratio is ABOVE its 40-week MA & momentum has shifted to Nifty, both indicating longer term outperformance of Nifty vs Bonds. Though the sample size maybe small but those runaway bull markets have happened with Nifty/Bond ratio above its MA and the slope of the MA also trending upwards.

Chart 3 Longer term intermarket strength as per the RS matrix is in Energy, FMCG & Infra. With Metals and Media at the bottom.

Chart 4 8 of the broader indices are above their respective 40-week MA, and now 6 of the sector indices are above their respective 40-week MA.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -9.6% & -5.5%.



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