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Sensex

Trend – The index has broken out from a 3-4 month long consolidation and has closed at a new high of 52482. It continues to make a series of higher highs and higher lows indicating primary trend is still on the bullish side.

Pattern – The index has formed a bug bullish candle indicating strength in near term. Any pullback (if any) should be used as a buying opportunity. Major support is at 48000 going forward.

Momentum – On the weekly chart, the RSI has eased off the overbought territory which says that the momentum is sideways as of now. Good bullish momentum build-up was seen in sectors like Power and Capital Goods. Direction – The index is expected to trade in positive territory until it breaks 48000 on the downside.

Volatility – The weekly ATR has reached 1530 points which means that Sensex currently has a range of 1530 points for a given week. Although on the daily timeframe, it has remained flat throughout the month with few ups and downs indicating 1 For private circulation only. given week. Although on the daily timeframe, it has remained flat throughout the month with few ups and downs indicating the trend in still intact. INDIAVIX (13.05) has dropped around 22.74% which means volatility had reduced substantially.

Market breadth – Sensex has been underperforming the BSE Midcap and BSE Smallcap index on the monthly timeframe indicating that the overall market breadth is mixed. 434 stocks of BSE 500 index are above the 200-day SMA indicating the larger trend has been stable. The breadth has increased as compared to last month where 411 stocks were above the 200-day MA.

Our take – Sensex is hitting all time high indicating positive momentum across all the time frames. Though our bias still remains positive, we may see a play of sector rotation within this bull market and hence traders are advised to wait and watch for short term corrections to create fresh longs. From current levels, the short to medium term trend still remains intact and the bulls to continue their bullish command into the markets towards 53300-54500 levels. On the downside an immediate support is placed around 52000 levels however any violation of this support zone on closing basis may cause short term correction towards 51500-51000 levels.

Nifty 50

Trend – The index has broken out from a 3-4 month long consolidation and has closed at a new high of 15915. It continues to make a series of higher highs and higher lows indicating primary trend is still on the bullish side.

Pattern – The index has formed a bug bullish candle indicating strength in near term. Any pullback (if any) should be used as a buying opportunity. Major support is at 15400 going forward.

Momentum – On the weekly chart, the RSI has eased off the overbought territory which says that the momentum is sideways as of now. Good bullish momentum build-up was seen in sectors like Power and Capital Goods.

Direction – The index is expected to trade in positive territory until it breaks 15400 on the downside.

Volatility – The weekly ATR has reached 469 points which means that Nifty currently has a range of 469 points for a given week. Although on the daily timeframe, it has remained flat throughout the month with few ups and downs indicating the 2 For private circulation only. week. Although on the daily timeframe, it has remained flat throughout the month with few ups and downs indicating the trend in still intact. INDIAVIX (13.05) has dropped around 22.74% which means volatility had reduced substantially. Market

breadth – Nifty has been underperforming the NSE Midcap and NSE Smallcap index on the monthly timeframe indicating that the overall market breadth is mixed. 442 stocks of NSE 500 index are above the 200-day SMA indicating the larger trend has been stable. The breadth has declined as compared to last month where 411 stocks were above the 200-day MA.

Our take – Nifty is hitting all time high indicating positive momentum across all the time frames. Though our bias still remains positive, we may see a play of sector rotation within this bull market and hence traders are advised to wait and watch for short term corrections to create fresh longs. From current levels, the short to medium term trend still remains intact and the bulls to continue their bullish command into the markets towards 16000-16300 levels. On the downside an immediate support is placed around 15600 levels however any violation of this support zone on closing basis may cause short term correction towards 15500- 15300 levels.

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