Amazon deals

Wednesday, December 2, 2015

Nifty chart: a midweek update (Dec 02 ‘15)

FIIs were net sellers of equity worth Rs 9000 Crores during Nov 2015, as per provisional figures. DIIs were net buyers of equity worth Rs 8500 Crores. Nifty lost about 135 points (1.6%) on a monthly closing basis.

RBI Governor left interest rates unchanged during the policy meeting on Dec 1. The decision was widely expected, and therefore, came as no surprise for the market.

Auto sales for Nov ‘15 were a mixed bag. Maruti, Hyundai, M&M showed double-digit growth on a YoY basis. Toyota, Honda, Tata Motors showed de-growth. Tractor sales picked up after several months.

NIFTY_Dec0215

The daily bar chart pattern of Nifty touched a higher bottom and rallied past its 20 day EMA, but is facing resistance from its falling 50 day EMA.

The bear phase from Mar ‘15 – marked by the blue down trend line – continues to dominate the chart. Nifty is trading almost 400 points below the down trend line.

The ‘death cross’ of the 50 day EMA below the 200 day EMA in early Sep ‘15 had confirmed a short-term bear market.

However, the index is trading nearly 900 points above its rising 200 week EMA (not shown). The long-term bull market remains intact.

Daily technical indicators are giving mixed signals. MACD has crossed above its signal line in negative zone. RSI is seeking support from its 50% level. Slow stochastic has entered its overbought zone.

Will the US Fed hike the interest rate next week? Will that have an adverse impact on market sentiments?

Nifty may tread water till those doubts get satisfactorily resolved.

No comments: