NIFTY SECTORIAL INDEX ANALYSIS

Nifty closed today on a flattish note, although intraday the moment was around 70 odd points in nifty futures, the premium in nifty futures suggest the BULLS are not ready to give up the fight.

As already discussed about the TRIANGLE formation in Nifty, mostly a similar pattern is visible in almost all the sectors, with a couple of sectors/ index moving ahead of nifty.

                                                                           NIFTY

TRIANGLE FORMATION IN NIFTY

The triangle in nifty is not breached, as price moves indicate there would be no major changes in the prices and nifty may continue to trade within the triangle for some more time.


                                                                   BANK NIFTY

BANK NIFTY TRIANGLE

In the above chart it can be seen that the Nifty is trading near the lower band of the Triangle, The Bank Chart  is however trading near the UpperBand of the Triangle and the close today was positive with banking index closing at 10723.60 or 7.70 points up from Fridays close. The last rally in nifty was mostly lead by Bank Nifty , will this continue this time around ??? Watch closely the banking index for early signs of recovery in the Nifty

                                                                      IT INDEX

IT INDEX

The IT Index has a different story and the trend line is violated and the index closed 47.80 points down from the Fridays close. Will this drag Nifty down???? Watch out the price action as it unfolds in the coming days.

                                                                                 PSE INDEX

PSE INDEX

Like IT Index the PSE index is also favouring the Bears and dragging the nifty Down.



                                                                  PSU BANK INDEX

Although the overall Banking Index is trading near the top band of the Triangle, the PSU banking index touched the Bottom of the triangle and managed to close near the lower band.

                                                                   MIDCAP INDEX

The MIDCAP INDEX seems like favouring the Bulls, although it closed in RED today but the close was above the upper band of the triange, today also it tested the upper band like it did on Friday but managed to close above the Triangles upper band.Keep a watch , if it comes back in the triangle then the breakout would be false and the momentum might move in the favour of the Bears.


                                                                 DEFTY INDEX

Defty which is the major indicator of the FIIs trading activity was also the only other index apart from BANK Index which managed to close in Green 1.55 points up. Defty is trading Near the lower band of the triangle.

All other INDEX are in line with Nifty, the advice is to go with the trend in Nifty and if the triangle breaks only then take good positions , else stay out or trade light.