Nifty 50 – Bank Nifty 19th November – 23rd November 2018

Weekly video on Nifty 50 & Bank Nifty. In this week’s video on Nifty & Bank Nifty, I have extensively covered Relative Strength framework to analyse the Strength of the market. I have shown through Relative Strength that why Markets are still not strong and while some pocket of market is showing strength, most of the market remains uncertain. I have also covered Crude Oil and USDINR data points to draw conclusions about overall Market strength.

I have begun this video with Nifty chart and Bank Nifty chart wherein I have used Fibonacci Retracement indicator to highlight price action of Nifty 50 and Bank Nifty around the 38.2% and 50% retracement level. Bank Nifty is now above its 200 Day moving average whereas Nifty is somewhat near. Most of the broader market indices still remain below their 200 Day moving average. 

I then move to Relative Strength concept. I have briefly explained what Relative Strength means and then I move to covering Bank Nifty, Nifty Metal, Nifty I.T., Nifty Midcap and Nifty Small Cap index along with other NSE Nifty indices. I have covered concept of Relative Strength in a three part video series and link for the same is posted below. This week I have shown how majority of broader market indices are still under performing Nifty and no conclusion yet can be drawn on strength of the market.

I then move to Crude Oil and USDINR and look at the current price action in these. I conclude that current rally in Equities is not strong as no substantial move has happened despite Crude Oil and USDINR falling from recent highs. In comparison to when they rose, Nifty 50 and Bank Nifty fell a lot more. Now that Crude and USDINR have corrected, rally in equities is muted. This directly shows that rally in equities despite macro data improvement is still weak. In the end, I make some key observations about how to approach Nifty 50 and Bank Nifty heading ahead.

Discussion

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