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Nifty: Last week’s Daral Street: Nifty may now be integrated.Some pockets may run

In a relatively stable week, the Indian stock market continued to rise, and another week ended with a rise. The volatility witnessed the previous week was not last week.For the past five days after the 700-point wide wild movement witnessed last week Nifty It moves in a more stable range of 270 odd points with little noticeable volatility.

In the year-end and New Year mood, sales volume was a little low. However, the headline index ended with a weekly basis of 269.25 points, or 1.96% net profit.

With the US dollar weakening, the market has been constantly rising for more than two months. The slump in the dollar index has generally led to strong FII flows to emerging markets, especially India. In the last nine weeks, Nifty has finished with a profit of eight. The remaining week saw some integration rather than corrective action.

However, Nifty is again too far from the average and is now growing too much. Volatility, which rose more than 25% last week, has cooled a bit as INDIA VIX fell 2.04% to 19.56.

Next week will be very important. At present, it is important to pay attention to significant pullbacks, but even if they occur in the dollar index, they are the main cause of FII flow.

Nifty had a mild turnaround. Broadly speaking, it remains limited at the 14,175 and 14,320 levels, which act as resistance points, and support is provided at the 13,850 and 13,700 levels.


The weekly RSI was 77.33. It marks a new 14-period high and remains neutral. There is no difference from the price. Weekly MACD remains bullish and trades on the signal line. A white body appeared on the candle. Other than this, no other formations were seen.

Following the strong moves of the past few weeks, Nifty has raised support to the 13,000 level. Even if corrective actions reach this level in the index, the broader view of the market is that the current major upward trend remains unchanged.

In the next few days, the possibility of Nifty integration cannot be ruled out. The market is likely to remain stock-specific and will be relatively out-performing in some pockets. Nifty will not give up if it grows too much, so it is advisable to avoid shorts at this level.

New purchases, on the other hand, will follow the momentum with great care and should be kept at a reasonable level.

Looking at the Relative Rotation Graph ®, we compared various sectoral indexes with the CNX500 (Nifty500 Index). CNX500 accounts for more than 95% of the market capitalization of all listed stocks.

Graph 2agency
Graph 3agency

The Relative Rotation Graph (RRG) review reflects a very strong setting in the major sectors and in the sectors preparing to search. Nifty Bank, Metal, real estate, Service department and Financial services All indexes are placed in the main quadrant. Service groups and financial services groups have given up their relative momentum somewhat, but all of these sectors are relatively ahead of the broader market.

The Nifty Commodities Index has also crawled within major quadrants. The Midcap100 index made a strong turn directly from the weakening quadrant and then crawled within the preceding quadrant. The Nifty IT Index is the only incumbent in this quadrant and seeks to integrate its relative performance.

Nifty Pharma, Media, Energy and Automobile Index are in the lagging quadrant. However, none of them are rotating southwest. They seem to be significantly improving their relative momentum. Equity-specific outperformances may not be excluded from these groups.

Nifty FMCG, consumer goods, PSU BankThe PSE and Infrastructure Index are within the improvement quadrant and appear to be steadily spinning while maintaining relative momentum towards the wider market.

Important note: The RRGTM chart shows the relative strength and momentum of the stock group. The chart above shows the performance relative to the Nifty500 Index (wider market) and should not be used directly as a buy / sell signal.

(((Milan Weishnaf, CMT, MSTA is a consultant technical analyst and founder of Vadodara’s Gemstone Equity Research & Advisory Services. He can be contacted at

Nifty: Last week’s Daral Street: Nifty may now be integrated.Some pockets may run Nifty: Last week’s Daral Street: Nifty may now be integrated.Some pockets may run

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