Sensex, Nifty charts (Oct 30, 2020): treading water before US elections

For the month of Oct '20, FIIs were net buyers of equity worth Rs 145.37 Billion. DIIs were net sellers of equity worth Rs 173.18 Billion - their highest monthly net selling since Mar '16. Both indices gained more than 3.5% for the month.

India's fiscal deficit during Apr-Sep '20 period touched Rs 9.1 Trillion, which exceeded the full year target of Rs 7.96 Trillion by almost 15%. For FY 2020-21, fiscal deficit may reach 9% of GDP against a target of 3.5%.

The cumulative fiscal deficit for Centre and states may touch 13% of GDP during FY 2020-21 against 7% of GDP during FY 2019-20.

BSE Sensex index chart pattern

After spending almost the entire month above its three daily EMAs in bull territory, the daily bar chart pattern of Sensex slipped below its 20 day EMA during the last two trading days.

The index bounced up after receiving good support from its rising 50 day EMA on the last trading day of Oct '20, and closed more than 2000 points above its 200 day EMA in a bull market.

Bears continue to fight doggedly. The month's trading has formed a bearish 'rounding top' pattern. If the pattern plays out, a re-test of support from the 200 day EMA is possible.

Daily technical indicators are looking bearish and showing downward momentum. MACD has crossed below its signal line in neutral zone. ROC is below its sliding 10 day MA in neutral zone. RSI is falling below its 50% level. Slow stochastic has dropped to the edge of its oversold zone, and can trigger a technical bounce.

Q2 (Jul-Sep '20) results of India Inc. declared so far have mostly exceeded expectations, even as top and bottom lines have degrown. HUL and L&T declared substantial interim dividends. [Companies with better performances usually declare their results earlier. Subsequent results may have more misses than hits.]

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty closed above its three weekly EMAs in a long-term bull market for the 17th straight week. However, the index dropped below 11700, losing almost 300 points (2.4%) on a weekly closing basis.

Bulls need not worry too much as all three weekly EMAs are still rising, which means bulls are in control of the chart. Note that FIIs  started  selling during the last three days of the week gone by. Also, the past 4 weeks' trading has formed a small 'rounding top' pattern that has bearish implications.

Weekly technical indicators are in bullish zones, but not showing any upward momentum. MACD is above its rising signal line in overbought zone. RSI is moving sideways above its 50% level. Slow stochastic has dropped to the edge of its overbought zone. Some more index consolidation or correction is likely. 

Nifty's TTM P/E has moved down to 31.90 - which remains well above its long-term average and inside its overbought zone. The breadth indicator NSE TRIN (not shown) is oscillating in neutral zone - hinting at near-term index consolidation.
 
Bottomline? Sensex and Nifty charts have been consolidating after reaching close to their lifetime highs (touched back in Jan '20). The stock market appears to be biding its time till US elections get over next week. Dow and S&P 500 indices are correcting in anticipation of a Biden win. Stay cautiously optimistic.

Nifty chart: a midweek technical update (Nov 06, 2019)

FIIs were net sellers of equity on Mon. Nov 4, but were net buyers during the next two trading days this week. Their total net buying was worth Rs 13.5 Billion. DIIs were net sellers of equity on on all three trading days. Their total net selling was worth Rs 32.1 Billion, as per provisional figures.

Nikkei India's Services PMI rose to 49.2 in Oct '19 from 48.7 in Sep '19, but remained below 50 (indicating contraction) for the second straight month. The Composite (Manufacturing + Services) PMI dropped to a 2 year low of 49.6 - pointing to further weakness in India's economy.

Four major Indian drug makers - Cadila (Moraiya plant), Glenmark (Baddi plant), Lupin (Mandideep plus two other plants), Aurobindo (two Hyderabad plants) - have received warning letters from US FDA, showing a hardening stance towards lapses in quality control.

The daily bar chart pattern of Nifty is trying to continue its rally towards a new high on the back of FII buying. However, selling by DIIs has kept the upward march of the index in check.

The index is struggling a bit to overcome resistance from the 12000 level while it trades well above its three rising EMAs in a bull market. The previous (Jun 3) top of 12103 is within touching distance.

Daily technical indicators are looking overbought. MACD is rising above its signal line inside overbought zone. RSI is moving sideways along the edge of its overbought zone. Slow stochastic is also moving sideways, inside its overbought zone. Some consolidation or a correction towards 11700 is possible. 

Nifty's TTM P/E has moved up to 27.71, which is well inside its overbought zone and much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is moving up in neutral zone, and may limit near-term index upside.

India's economy is heading southwards - as is evident from most macroeconomic indicators. But Nifty is moving north on expectations of more reforms. 

Unless banks become more realistic about narrowing their spreads on loans, economic growth revival will remain a distant dream. Periodic reform announcements are boosting short-term bullish sentiments in the market, but neither helping rural distress nor encouraging consumption.

This is not the time to be brave. Stay invested, carry on with investment plans but avoid large bets on 'cheap' stocks. 

Sensex, Nifty charts (Sep 13, 2019): continue to consolidate sideways

During another holiday-shortened trading week, FIIs were net sellers of equity on Mon. and Fri. (Sep. 9 and 13), but were net buyers on Wed. and Thu. (Sep. 11 and 12). Their total net buying was worth Rs 4.6 Billion. DIIs were net sellers of equity on Thu., but were net buyers on the other three trading days. Their total net buying was worth Rs 19.0 Billion, as per provisional figures.

India's merchant exports slipped by 6.1% to US $26.13 Billion in Aug '19. Imports dropped by 13.4% to US $39.58 Billion. The trade deficit of $13.45 Billion narrowed from $17.92 Billion in Aug '18, but widened marginally from $13.43 Billion in Jul '19.

In Jul '19, India's Index of Industrial Production (IIP) rose to 4.3% from a downwardly revised 1.2% in Jun '19, but was lower than 6.5% in Jul '18. CPI-based consumer inflation in Aug '19 rose to a 10 month high of 3.2% (due to higher vegetable prices) against 3.1% in Jul '19.

BSE Sensex index chart pattern

The daily bar chart pattern of Sensex gained more than 400 points (1.1%) on a weekly closing basis as FIIs turned net buyers for the week. The index moved above its 20 day EMA, but faced resistance from its 200 day EMA.

The 50 day EMA is about 105 points above the 200 day EMA, and the two together may provide strong resistance on the upside. In case Sensex manages to move above its 50 day EMA, it can quickly reach the 38250-38500 zone. Will it?

Daily technical indicators are looking neutral to bullish. MACD rising above its signal line in bearish zone. RSI is at its neutral zone. Slow stochastic is above its 50% level. Some near-term upside is possible.

The expected third economic 'booster' package was announced by the Finance Minister on Sat. Sep 14 - some sops for exporters and affordable housing - but perhaps not enough to boost bullish sentiment. The market may have rallied in hope of a stronger 'booster' dose.

'Death cross' of the 50 day EMA below the 200 day EMA, which will technically confirm a bear market, is still awaited. Except for two or three sessions, the index has spent most of the past six weeks below its 200 day EMA in bear territory.

Small investors have kept faith in the market by not discontinuing SIPs. However, anecdotal evidence from the hinterland shows that rural economy is in shambles. The periodic 'booster' packages have not shown much effect on the ground.

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty gained 130 points (1.2%) on a weekly closing basis, but closed below its 50 week EMA for the seventh straight week.

Weekly technical indicators are in bearish zones, but not showing any downward momentum. MACD is moving sideways below its falling signal line. RSI is below its 50% level. Slow stochastic has moved up a bit from the edge of its oversold zone. Expect some near-term index upside.

Nifty's TTM P/E has moved up to 27.23 - which is well above its long-term average in overbought zone. The breadth indicator NSE TRIN (not shown) is falling inside its oversold zone, and can limit near-term index upside.

Bottomline? Sensex and Nifty charts have been consolidating sideways for the past seven weeks. A low Q1 (Jun '19) GDP figure and the ongoing US-China trade spat dampened bullish sentiment. Small investors should continue with their SIPs, but avoid any impulsive buying. 

Sensex, Nifty charts (Sep 06, 2019): consolidating inside support zones

During a holiday-shortened trading week, FIIs were net sellers of equity on all four days. Their total net selling was worth Rs 52.7 Billion. DIIs were net buyers of equity on all four trading days. Their total net buying was worth Rs 44.6 Billion, as per provisional figures.

The market started a pullback rally from Wed. Sep 4 expecting announcement of a third set of measures for boosting India's sagging economy. Instead, the Finance Minister promised to consider more measures after consultations.

After strong rallies, prices of gold and silver corrected sharply during Thu. and Fri. (Sep 5 and 6). With global stock markets on recovery paths, some more near-term downside in precious metals is possible.

BSE Sensex index chart pattern

The daily bar chart pattern of Sensex dropped sharply and lost 770 points on Tue. Sep 3 due to heavy selling by FIIs after the long week end. There was some recovery during the rest of the week, but the index closed below its three EMAs inside the 'support zone' (between 35900 and 37100).

Daily technical indicators are looking neutral to mildly bullish. MACD has merged with its rising signal line in bearish zone. ROC has crossed above its 10 day MA to enter bullish zone. RSI and Slow stochastic are just below their respective 50% levels.

The market was hoping for a third economic booster 'package' on Fri. Sep 6, but all it got was a promise. It won't be surprising if FIIs continue to vote with their feet. When an economy is steadily going downhill, throwing a few 'packages' in its path won't stop the slide. The gradient of the road itself needs to be changed.

That means bold reforms and immediate actions. The time for consultation and consideration is long over. More and more companies are laying-off employees and reducing production - making the economy decelerate even more. It is going to be a long and difficult road ahead. 

Small investors should concentrate on protecting capital - whatever may be left of it. Ignore the exhortations of those experts who want you to buy now.

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty tested the lower edge of the 'support zone' (between 10700 and 11100) intra-week before bouncing up to close just below 10950. 

The index has been consolidating inside the 'support zone' for the past six weeks, and is trading below its 20 week and 50 week EMAs.

Weekly technical indicators are looking bearish and oversold. MACD is falling below its signal line in bearish zone. ROC and RSI are falling inside their respective oversold zones. Slow stochastic is moving sideways along the edge of its oversold zone. Expect some more consolidation or correction.

Nifty's TTM P/E has moved down to 26.91 - which remains above its long-term average in overbought zone. The breadth indicator NSE TRIN (not shown) has fallen sharply inside its oversold zone. Further index upside may be limited.

Bottomline? Sensex and Nifty charts are consolidating within long-term support zones. A low Q1 (Jun '19) GDP figure and the ongoing US-China trade spat have dampened bullish sentiment. Small investors should stay on the sidelines, but continue with their SIPs. 

S&P 500 and FTSE 100 charts (Jul 26, 2019): bulls brush aside feeble bear resistance

S&P 500 index chart pattern

The daily bar chart pattern of S&P 500 seems to have brushed aside feeble bear resistance. The index bounced up after receiving support from its rising 20 day EMA and touched a new high of 3028 on Fri. Jul 26.

The index gained 49 points (1.6%) on a weekly closing basis, and is trading above its three rising EMAs in a bull market. However, bears are refusing to give up. Volumes were heaviest on Thu. Jul 25 - the only down day during the week. A sign that 'smart money' is getting out?

Daily technical indicators are in bullish zones but showing weak upward momentum. MACD is moving sideways below its falling signal line. RSI is moving sideways above its 50% level. Slow stochastic has re-entered its overbought zone. 

All three indicators are showing negative divergences by failing to touch new highs with the index. Some correction or consolidation may follow.

On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market, but has formed a 'broadening top' reversal pattern since Jan '18. Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs.

FTSE 100 index chart pattern

The daily bar chart pattern of FTSE 100 continued its sideways consolidation  with a downward bias for the third straight week. The index touched a high of 7599 in bull territory on Tue. Jul 23, but dropped below its 20 day EMA the very next day.  

FTSE dropped to seek support from its 50 day EMA on Thu. Jul 25. On Fri. Jul 26, the index bounced up above its 20 day EMA to close above its three EMAs in bull territory - at 7549 (gaining 40 points for the week).

Daily technical indicators are turning bullish. MACD is moving sideways below its falling signal line in bullish zone. RSI and Stochastic are rising above their respective 50% levels. The index seems ready to resume its up move.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the 8th straight week. Weekly technical indicators are showing upward momentum in bullish zones. MACD is rising above its signal line. RSI is moving up above its 50% level. Stochastic is rising inside its overbought zone.

S&P 500 and FTSE 100 charts (Jul 12, 2019): bears try their best to stop charging bulls

S&P 500 index chart pattern

An expected pullback towards the support level of 2954 on the daily bar chart pattern of S&P 500 touched an intra-day low of 2963 on Tue. Jun 9. Bulls decided to 'buy the dip'. 

The index formed a 'reversal day' bar (lower low, higher close), which triggered a quick rally past the 3000 level to a new high of 3014 on Fri. Jul 12. The index gained 23 points (0.8%) on a weekly closing basis.

Daily technical indicators are looking overbought. MACD is rising above its signal line inside its overbought zone. RSI has entered its overbought zone. Slow stochastic is climbing inside its overbought zone, but showing negative divergence by failing to touch a new high with the index. 

Some consolidation or correction is possible. All three EMAs are rising, and the index is trading well above them in a bull market. 

On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are  looking bullish and overbought, and showing negative divergences by failing to touch new highs with the index.

FTSE 100 index chart pattern

The daily bar chart pattern of FTSE 100 consolidated sideways with a downward bias during the week. After closing above the support level of 7529 during the first three days, the index slipped below 7529 on Thu. Jun 11.

The 20 day EMA provided good support. The index managed to close above the 7500 level and its three EMAs in bull territory. FTSE lost 47 points (0.6%) on a weekly closing basis.

Daily technical indicators are in bullish zones but looking bearish. MACD has crossed below its signal line. RSI and Stochastic are falling towards their respective 50% levels. Some more consolidation or correction is likely.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the sixth straight week. Weekly technical indicators are in bullish zones. MACD has crossed above its signal line. RSI is slowing slight downward momentum above its 50% level. Stochastic has slipped down from its overbought zone. 

WTI and Brent Crude Oil charts: facing resistances after bouncing up from support zones

WTI Crude Oil chart

The daily bar chart pattern of WTI Crude Oil bounced up from the support zone (between 50-52) and rose smartly above its 20 day and 50 day EMAs before facing stiff resistance at the 200 day EMA.

After two consecutive closes just above the 200 day EMA in bull territory on Jun 26 and 27, oil's price dropped down to seek support from its 50 day EMA on Jun 28. It bounced up to close just below its 200 day EMA on Jul 1.

Daily technical indicators are looking neutral to bullish. MACD is above its rising signal line in neutral zone. RSI is moving sideways above its 50% level. Slow stochastic is sliding down inside its overbought zone. 

Falling volumes during the technical bounce may encourage bears to defend the 200 day EMA vigorously.

On longer term weekly chart (not shown), oil's price faced strong resistance from its 200 week EMA and dropped to close just above its 20 week EMA in long-term bear territory. Weekly technical indicators are at their respective neutral zones. Only Slow stochastic is showing upward momentum. 

Brent Crude Oil chart

The daily bar chart pattern of Brent Crude Oil bounced up from the support zone (between 58-60) and rose above its 20 day EMA, only to face strong resistance from its 50 day EMA.

For the past seven trading sessions, oil's price has been consolidating sideways between its 20 day and 50 day EMAs. On Jul 1, it formed a long-legged 'doji' candlestick pattern that indicates indecision among bulls and bears. 

Daily technical indicators are giving conflicting signals. MACD is rising above its signal line in bearish zone. RSI is moving sideways along its 50% level. Slow stochastic is poised to drop down from its overbought zone. Some more consolidation or correction is likely.

On longer term weekly chart (not shown), oil's price faced resistance from its 200 week EMA, and closed below its three weekly EMAs in long-term bear territory for the fifth straight week. Weekly technical indicators are in bearish zones. Only Slow stochastic is showing some upward momentum.

S&P 500 and FTSE 100 charts (Jun 28, 2019): bulls pause before attempting to move the indices higher

S&P 500 index chart pattern

The following remark appeared in last week's post on the daily bar chart pattern of SPX 500: "Expect bears to put up a fight to defend the 2954 level. But it might be a 'fight for a cause long ago forgotten'."

Bears did put up a good fight, as the index closed lower during the first three trading days of the week, touching a low of 2913 on Wed. Jun 26. However, bulls fought back. The index lost just 9 points on a weekly closing basis.

Daily technical indicators are in bullish zones, but only RSI is showing some upward momentum. MACD is above its rising signal line. RSI has moved up after a dip towards its 50% level. Slow stochastic has dropped sharply from its overbought zone. 

All three EMAs are rising, and the index is trading above them in a bull market. It is just a matter of time before bulls overcome bear resistance at the 2954 level.

On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in a long-term bull market. Weekly technical indicators are  in bullish zones, but not showing much upward momentum.

FTSE 100 index chart pattern

The following remark appeared in last week's post on the daily bar chart pattern of FTSE 100: "A convincing close above the previous (Apr 23) top of 7529 is required for bulls to regain control of the chart, and technically confirm completion of a bullish 'cup and handle' pattern..."

Technical confirmation of the 'cup and handle' pattern is still awaited, as the index consolidated sideways within a trading range during the week.

Daily technical indicators are in bullish zones but only Stochastic is showing upward momentum. MACD has dropped to seek support from its signal line. RSI is moving sideways above its 50% level. Stochastic has recovered after falling towards its 50% level.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the fourth straight week. Weekly technical indicators are looking bullish. MACD has crossed above its signal line in bullish zone. RSI and Stochastic are rising above their respective 50% levels. Some more upside is likely.

Sensex, Nifty charts (Jun 21, 2019): consolidating, but showing bearish reversal signs

FIIs were net buyers of equity on Tue. (Jun 18), but net sellers on the other four days. Their total net selling was worth Rs 15.7 Billion. DIIs were net sellers of equity on Wed. (Jun 19), but net buyers on the other four days. Their total net buying was worth Rs 30.2 Billion, as per provisional figures.

USA has warned that it would be compelled to take some "additional action" against India over "unfair" trade practices as the two countries have made "no headway" on these issues.

Sovereign Wealth funds and State Pension funds are piling into India, buying stakes in everything from airports to renewable energy, attracted by political stability, reforms and a growing middle class.

BSE Sensex index chart pattern

The daily bar chart pattern of Sensex consolidated sideways during the week - getting good support from its 50 day EMA - but lost about 250 points (0.6%) on a weekly closing basis. The index is trading well above its rising 200 day EMA in a bull market.

However, on the closing (line) chart (see below), the index had broken out below a small 'head and shoulders' reversal pattern (with purple neckline), followed by a pullback towards the purple neckline - and may be forming a larger complicated 'head and shoulders' pattern with a green neckline.

Why complicated? Because the 'head' of the larger 'head and shoulders' pattern is itself a 'head and shoulders' pattern. Note that the green neckline has not been breached yet. Bulls can be expected to put up a strong defense here.

What if the green neckline gets breached? The larger complicated 'head and shoulders' pattern will get technically confirmed. Sensex can then be expected to move down to test support from its rising 200 day EMA.  

Daily technical indicators are looking bearish. MACD is falling below its signal line in bullish zone. ROC faced resistance from its '0' line and dropped back into bearish zone. RSI is below its 50% level. Slow stochastic has emerged weakly from its oversold zone. 

Some more correction, and a part or complete filling of 'Gap 2' (formed on May 20) may be on the cards.

Formation of a reversal pattern - specially one occurring near a lifetime high - should be treated with respect and caution. The up trend from the Oct '18 low and the bull market are intact. So, there is no need to sell in a panic. But buying can be restricted for the time being.

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty closed lower for the third week in a row as it dropped down to test support from the upward 'gap' formed on May 20. The index closed above its weekly EMAs in a bull market, but has formed a 'rounding top' reversal pattern.

Weekly technical indicators are looking bearish. MACD is about to fall from its overbought zone. ROC is below its 10 week MA and has fallen to its neutral zone. RSI and Slow stochastic have dropped from their respective overbought zones. Some more consolidation or correction is possible. 

After touching a high of 29.90 on Mon. Jun 3, Nifty's TTM P/E has moved down to 28.99, which is still well above its long-term average in overbought zone. The breadth indicator NSE TRIN (not shown) has dropped sharply inside its oversold zone. Some near-term index upside or consolidation is likely.

Bottomline? Sensex and Nifty charts are consolidating after touching lifetime highs, but showing some bearish reversal signs. Any pre-budget rally can be used to book profits. Avoid the urge to do bottom fishing among small/mid caps.

WTI and Brent Crude Oil charts: consolidating near support zones

WTI Crude Oil chart

The following comment appeared in the previous post on the daily bar chart pattern of WTI Crude Oil: "The imminent 'death cross' of the 50 day EMA below the 200 day EMA will technically confirm a bear market."

The 'death cross' (marked by grey oval) has ended the brief foray of oil's price into bull territory during Apr-May '19. The support zone between 50-52 has provided temporary solace to bulls.

Daily technical indicators are looking bearish and oversold. MACD is moving sideways below its signal line in oversold zone. RSI has emerged weakly from its oversold zone. Slow stochastic has dropped back inside its oversold zone. 

All three EMAs are falling, and oil's price is trading below them in a bear market. Bears are likely to continue with their 'sell on rise' strategy.

On longer term weekly chart (not shown), oil's price has closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are in bearish zones, and showing downward momentum. 

Brent Crude Oil chart

For the past two week's, the daily bar chart pattern of Brent Crude Oil has consolidated sideways in a range between 60-64. The 'death cross' of the 50 day EMA below the 200 day EMA (marked by grey oval) has technically confirmed a return to a bear market.

The support zone between 58-60 has helped oil's price to stabilise after a steep fall. However, it may only be a temporary respite for bulls. A slowing global economy will not be able to boost oil demand. Further downside is likely.

Daily technical indicators are looking bearish and oversold. MACD is moving sideways below its signal line in oversold zone. RSI has bounced up weakly from the edge of its oversold zone. Slow stochastic has dropped back inside its oversold zone. 

On longer term weekly chart (not shown), oil's price closed below its three weekly EMAs in long-term bear territory for the third week in a row. Weekly technical indicators are in bearish zones, and showing downward momentum - hinting at some more consolidation or correction.

S&P 500 and FTSE 100 charts (May 24, 2019): bears trying to exert control

S&P 500 index chart pattern

The following comment was made in last week's post on the daily bar chart pattern of S&P 500: "The index remains in a down trend (marked by purple trend line) that started after the index touched a lifetime high of 2954 on May 1."

The index traded below the (purple) down trend line through the week. It made an attempt to move above its 50 day EMA on Tue. and Wed. (May 21 and 22), but dropped down to close below it - losing 1.2% on a weekly closing basis.

On Thu. May 23, the index tested support from the 2800 level for the second time since Mon. May 13, and bounced up a bit - keeping bullish hopes alive. As long as the index trades above its 200 day EMA, bulls need not worry too much.

Daily technical indicators are in bearish zones, and showing downward momentum. MACD is falling below its signal line. RSI has dropped down again after facing resistance from its 50% level. Slow stochastic had bounced up from the edge of its oversold zone, but is falling down towards it once more. 

Some more correction, and a test of support from the 200 day EMA can be expected. A breach of the 200 day EMA can drop the index to the 2700-2725 zone.

On longer term weekly chart (not shown), the index dropped below its 20 week EMA for the 2nd week in a row, but bounced up to close above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but showing downward momentum - hinting at some more correction. 

FTSE 100 index chart pattern

The following comment was made in last week's post on the daily bar chart pattern of FTSE 100: "A convincing move above the Apr 23 top of 7529 is necessary to complete the 'cup and handle' pattern."

The index made a feeble attempt to rise higher - touching a much lower top of 7373 on Wed. Mar 22 - but dropped down to test support from its 200 day EMA the next day.

Though the index bounced up to close just above 7275 in bull territory on Fri. May 24, it lost 70 points (~1%) on a weekly closing basis.

Daily technical indicators are giving conflicting signals. MACD is seeking support from its signal line in bearish zone. RSI is rising towards its 50% level after falling below it. Stochastic has moved above its 50% level after falling below it.

Expect some consolidation before the index can make another attempt to move above the Apr 23 top of 7529, which is necessary to complete the 'cup and handle' pattern.

On longer term weekly chart (not shown), the index dropped below its merged 20 week and 50 week EMAs, but bounced up to close above its three weekly EMAs in long-term bull territory. Weekly technical indicators are looking neutral to bearish, and showing slight downward momentum.