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Bank Nifty

Bank Nifty index failed to hold 52000 zones and nosedived by more than 4000 points during the month. It made a base near 47850-48000 zones and support based buying interest emerged in the selective heavyweights. It formed a bearish candle on monthly frame with longer lower shadow indicating buying emerging at lower levels. Price observation of the last couple of weeks suggests that a hold above 50000 zones could trigger a short covering move towards 51500 then 52000 zones while on the downside, supports are placed at 49000 then 48500 zones.

Nifty Financial Services

Nifty Financial Services Index has negated its lower lows formation on the weekly scale and has also given a golden crossover on the daily chart which has bullish implications. It is on the verge of breaking out from a falling channel on the daily chart which may support the bullish reversal. The MACD indicator is rising which supports the upward price momentum. Thus, looking at overall chart setup we are expecting the sector to head towards 24875 and 25450 zones while on the downside support is at 23000 and 22540 levels.

RelativeRotation Graphs(RRG):

Relative rotation graphs chart shows the relative strength and momentum for group of Stocks/Indices. It allows us to compare a security against the benchmark to see if it is outperforming or underperforming the benchmark. It is derived on Relative strength in which value of a sector is divided by the value of index mainly a benchmark which allows us to compare the performance of the sector. Relative Strength ratio is normalized to oscillate around 100 (plotted on X axis) i.e Jdk RS - Ratio along with this it provides the speed and direction of the Relative strength ratio (plotted on Y axis) i.e Jdk RS- momentum. The scatter plot is divided into four quadrants i.e Leading, Weakening, Lagging and Improving quadrant.

The analysis of sectorial RRG shows that Nifty Realty is in the Leading Quadrant which indicates strength going ahead. Nifty Bank, Pharma and IT are under weakening quadrant which suggests momentum is likely to decline. Nifty Metal and Energy are inside the Lagging quadrant which shows strength and momentum both are missing. Nifty PSU Bank, FMCG, Auto, and Infra are under Improving quadrant which suggests strength is still low but momentum will start Improving.

Nifty Auto

Nifty Auto Index has broken out from a falling trend line on the weekly chart after bouncing up from key support levels. It has surpassed above its 200 DEMA on the daily chart and has been respecting its higher highs formations. The Stochastic indicator has exited its oversold zone and turned up confirming the bullish momentum upwards. Thus, looking at overall chart setup we are expecting the sector to head towards 24725 and 25200 zones while on the downside support is at 22850 and 22400 levels.

RRG For Nifty Auto

The analysis of RRG for Auto Index shows that Maruti, Eicher, Mahindra & Mahindra and Balkrishna Ind are in the Leading Quadrant which indicates strength going ahead. TVS Motors, MRF, Apollo tyre and Bosch are under weakening quadrant which suggests momentum is likely to decline. Tata Motors, Ashok Leyland, Bajaj auto, Bharat forge, Hero moto and Samvardhana Motherson, are inside the Lagging quadrant which shows strength and momentum both are missing.

Nifty Realty

Nifty Realty Index has formed a bullish engulfing pattern near its 100 WEMA support zone suggesting bullish sentiment. On the daily scale it has broken out from a double bottom pattern confirming the upwards momentum. The RSI Indicator has turned up from its bottom to support the bullish momentum. Thus, looking at overall chart setup we are expecting the sector to head towards 995 and 1015 zones while on the downside support is at 917 and 898 levels.

RRGF or Nifty Realty

The analysis of RRG for Nifty Realty Index shows that Phoenix Mills, Lodha and Brigade are in the Leading Quadrant which indicates strength going ahead. Oberoi Realty is under weakening quadrant which suggests momentum is likely to decline. DLF, Prestige and Godrej Prop are inside the Lagging quadrant which shows strength and momentum both are missing. Raymond is under improving quadrant which suggests strength is still low but momentum will start Improving.

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