Sensex in February month had lost almost 6.9% and this is the 6th consecutive month sensex is making lower lows and lower highs. And the current down slide from OCT 2015 had left 4 gaps left unfilled in Sensex around 27318, 25357, 24196, 23361. So are we testing the first gap zone 23361 this Budget 2016?
The Nifty Futures and Bank Nifty Futures continued to move up last week, gaining 2.2% and 1.0% respectively on close. And Bank Nifty is relatively under-performing in the recent uptrend. However this may so far foreign investors are relentlessly selling in equity market and Debt Market and had pulled out more than Rs 14,000 crore. The Outflow of Debt Market is far steeper than Equity Market.
Willam VIX FIX study has been applied over the daily and weekly charts of Nifty futures. And VIX FIX turning down from the peak indicate a possible bottom is already in place. On the weekly charts Nifty futures has to maintain 5197 Weekly 5EMA low as support on weekly basis. And the 5EMA High weekely levels are at 8483.
FII/FPI are the aggressive net sellers during the last week trading session. Last week Nifty futures had made a low of 8020.55 followed by a sharp reversal and the hourly charts is in prolong downtrend with the resistance zone comes around 8343.25. Currently the falling momentum suggests a possible weakness in the uptrend in the very near term.
Bank Nifty shows a considerable strength in the current fall of CNX Nifty. Compared to other sectors the relative strength in Bank Nifty is far better. However most of the sectors shows a falling momentum and the relative strength in pharma sector , reality sector and CNX Smallcap is relatively weaker with a strong momentum which signifies highly underperforming sectors.
This relative study is done using RRG Graph from Market Analyst 7. Here RRG Graph is used to study the movements of Sectors relative to CNX Nifty Index to identify under-performing and outperforming sectors (shorter term) relative to the index.