⦿ Almost all indices are in an uptrend under pressure.
⦿ Smallcap, Microcap, FMCG & Auto indices which entered a confirmed uptrend last week, are back in uptrend under pressure now.
⦿ Service index is the only one in a confirmed downtrend.
Momentum → Negative & worsening
⦿ Majority of the indices have negative & worsening momentum.
⦿ Midcap, Auto, Infra & IT join indices with negative & worsening momentum.
⦿ There is no index with positive & improving momentum.
Swing Confidence → 0
⦿ Both Nifty & Smallcap are in a weekly upswing. On daily charts, both are in a confirmed downswing. Swing Confidence is now 0, which means no new fresh swing positions for now. Existing positions, if any, should be having 0 open risk.
⦿ Nifty broke down from the 1000 point range between 19200 to 20200, to take support at 18800-18900 levels, giving us day one of an attempted rally. The current distribution day count is 9, as this week added 2 more distribution days.
⦿ Majority of indices are in a confirmed downswing.
Breadth → Weak
⦿ Breadth as per moving averages: % of stocks above both 10-day & 20-day MA went briefly oversold, & now stay below 50. As % of stocks above 50-day MA are <50%, we are are below the bullish threshold. After staying comfortably bullish & sustainability 80+ for 7 consecutive weeks, the % of stocks above 200-day MA now stands around 70.
⦿ After staying negative for 3 sessions, Net breadth as per 4% advance & decline has turned positive.
⦿ Market breadth volume, after the strong red days, has gone low to the territory of 0.25 to 5, as expected. This decrease in volume indicates reduction in participation & possibly less sustainable breakouts.
Bias → Sideways
Currently, the bias is sideways.
⦿ Nifty has stayed below the 50-day MA for 3-consecutive days.
⦿ While Net New Highs are positive, they are neither positive nor negative for 3-consecutive days yet. So the bias is sideways.
⦿ On a lower timeframe, the 20-day NNH stays negative.
That’s all for this week. If you'd like to know when I publish something new, just subscribe to my newsletter and you'll get the latest sent direct to you.
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