Nifty PSE Index has rolled inside the weakening quadrant. Some relative outperformance can be expected from these groups as well but they appear to be giving up on their relative momentum. The FMCG, Midcap 100, and Infrastructure indices are also inside the leading quadrant. These groups are likely to show relative outperformance against the broader Nifty 500 Index. The analysis of Relative Rotation Graphs (RRG) shows Nifty Realty, NiftyBank, Consumption, and Financial Services indices are inside the leading quadrant.
In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (Nifty 500 Index), which represents over 95% of the free float market cap of all the stocks listed. It is strongly recommended to continue approaching the markets on a highly selective basis and vigilantly protect profits at higher levels. There is no technical evidence present on the chart that suggests a steep decline, however, there won’t be any steep up-move in the market either unless the 18,350-18,500 zone is taken out convincingly. The technical structure of the markets suggests that the ranged consolidation may continue and the market will continue finding selling pressure at higher levels. This makes the 18,350-18,500 zone a strong resistance zone for the index.Īll in all, we are not yet completely out of the woods. Right now, the index trades near another pattern resistance point of 18,389. The index resisted this trendline multiple times before crossing above it and taking support on it twice. The pattern analysis shows that Nifty is playing out well to the falling trend line that begins from 18,600 and joins the subsequent lower tops.
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