Last week, FIIs were net sellers of equity worth Rs 47.7 Billion, as per provisional figures. DIIs were net buyers of equity worth Rs 50.1 Billion.
Sensex gained 417 points (1.3%) and Nifty gained 144 points (1.4%) on a weekly closing basis. Both indices are consolidating sideways with downward biases for the past 5 weeks.
Loan growth of banks hit a 3 years high of 9.6% in Nov '17, against 6.6% in Nov '16 and 9.3% in Nov '15, according to provisional RBI data. Low base effect may have contributed to the higher growth number. Since Oct '17, trend in loan growth to large corporate houses has turned positive.
BSE Sensex index chart pattern
The following comments in last week's post on the daily bar chart pattern of Sensex may be noted: "Some more correction is possible. But bears should not get too enthusiastic. The index is close to the upper edge of the downward-sloping channel, which had provided good support on Nov 15 - and may do so again."
As expected, the index corrected during the first three days of the week to the upper-end of the downward-sloping channel - only to bounce up after receiving good support.
The index closed above its 50 day EMA on Thu. Dec 7. On Fri., it formed an upward 'gap' of 42 points and closed above its 20 day EMA. So, is the correction-cum-consolidation over?
Not yet. The index needs to cross convincingly above its previous (Nov 28) top of 33770 for bulls to wrest control. Bears may try to prevent that from happening - at least till Gujarat state election results are announced.
Daily technical indicators are showing signs of turning bullish. MACD has stopped falling, and is at its neutral zone. ROC and Slow stochastic have emerged from their respective oversold zones. RSI is rising towards its neutral zone.
If the index continues to rally, resistance can be expected from the zone between 33700 and 33900.
NSE Nifty index chart pattern
The following comments were made in last week's post on the weekly bar chart pattern of Nifty: "Some more correction can't be ruled out. But proximity to the 'support/resistance zone' between 10100 and 9700 should stall a deeper correction."
The index corrected below its rising 20 week EMA into the 'support/resistance zone' intra-week, but bounced up to close above its three weekly EMAs in a bull market.
For the past 5 weeks, the index has been consolidating within a downward-sloping channel. A convincing upward breakout above the channel will restore control of the chart to bulls.
Weekly technical indicators are in bullish zones. Only ROC is showing upward momentum. MACD, RSI and Slow stochastic are moving sideways.
Nifty's TTM P/E has increased to 26.26 - well above its long-term average. The breadth indicator NSE TRIN (not shown) has fallen sharply from its oversold zone and is hinting at some more index upside.
Bottomline? Sensex and Nifty charts have bounced up from important support levels that were successfully tested three weeks back. Both indices may continue their rally next week, but need to overcome resistance zones.
Sensex gained 417 points (1.3%) and Nifty gained 144 points (1.4%) on a weekly closing basis. Both indices are consolidating sideways with downward biases for the past 5 weeks.
Loan growth of banks hit a 3 years high of 9.6% in Nov '17, against 6.6% in Nov '16 and 9.3% in Nov '15, according to provisional RBI data. Low base effect may have contributed to the higher growth number. Since Oct '17, trend in loan growth to large corporate houses has turned positive.
BSE Sensex index chart pattern
The following comments in last week's post on the daily bar chart pattern of Sensex may be noted: "Some more correction is possible. But bears should not get too enthusiastic. The index is close to the upper edge of the downward-sloping channel, which had provided good support on Nov 15 - and may do so again."
As expected, the index corrected during the first three days of the week to the upper-end of the downward-sloping channel - only to bounce up after receiving good support.
The index closed above its 50 day EMA on Thu. Dec 7. On Fri., it formed an upward 'gap' of 42 points and closed above its 20 day EMA. So, is the correction-cum-consolidation over?
Not yet. The index needs to cross convincingly above its previous (Nov 28) top of 33770 for bulls to wrest control. Bears may try to prevent that from happening - at least till Gujarat state election results are announced.
Daily technical indicators are showing signs of turning bullish. MACD has stopped falling, and is at its neutral zone. ROC and Slow stochastic have emerged from their respective oversold zones. RSI is rising towards its neutral zone.
If the index continues to rally, resistance can be expected from the zone between 33700 and 33900.
NSE Nifty index chart pattern
The following comments were made in last week's post on the weekly bar chart pattern of Nifty: "Some more correction can't be ruled out. But proximity to the 'support/resistance zone' between 10100 and 9700 should stall a deeper correction."
The index corrected below its rising 20 week EMA into the 'support/resistance zone' intra-week, but bounced up to close above its three weekly EMAs in a bull market.
For the past 5 weeks, the index has been consolidating within a downward-sloping channel. A convincing upward breakout above the channel will restore control of the chart to bulls.
Weekly technical indicators are in bullish zones. Only ROC is showing upward momentum. MACD, RSI and Slow stochastic are moving sideways.
Nifty's TTM P/E has increased to 26.26 - well above its long-term average. The breadth indicator NSE TRIN (not shown) has fallen sharply from its oversold zone and is hinting at some more index upside.
Bottomline? Sensex and Nifty charts have bounced up from important support levels that were successfully tested three weeks back. Both indices may continue their rally next week, but need to overcome resistance zones.
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