Markets this week

NIFTY giving a good pullback and an up close for the weekend, keeps the bullishness intact. A ninth straight week of up close on the NIFTY. This week's price close has managed to get the MACD Histogram above zero. There is a very clear bearish divergence on the weekly chart for all the indicators. Till there is a down close, bulls need not worry.

5400 seems to be a big hurdle for NIFTY at the moment. Once it decisively crosses it we shall see the NIFTY brace 5550 mark easily. Daily charts show topped out position on indicators. Both MACD Lines and MACD Histogram have gone flat, the next up move will end the present bullishness. The pull back which came on Friday did not reach value zone before taking off on the bullish side.

There can be some range bound sessions before the 5400 mark is reached again. On the reach of these levels, Daily charts will retrace bearish divergence on all indicators. This would give in for a good amount of correction on the NIFTY. Hourly positions do not have much promise on the long side, while daily trades have no weakness yet on the longs. Hold on to long positions till there is weakness, but be on the front foot to reverse positions or at the most exit longs on first weakness, because rampant bear moves are likely.

Most of the sector Indices registered gains this week except of HEALTH CARE and TECHNOLOGY which had minor weakness. CONSUMER SERVICES and UTILITIES
Sector gave robust performance by registering 3.66 and 3.47% gains respectively.

RALLIS reaches target from our recommended calls. All other stocks have closed positive while NFL is negative, where the stop is intact. BHARTI has closed inside the value zone, as there is not much strength shown in this stock on the bullish side, we need to wait for an uptick to add to existing longs.

Healthcare Equipments industry was the highest loser this week. As this Industry group is very strong on the weekly charts, there is opportunity in FORTIS here. Paper Industry group was the great performer this week with gains of 27.27% on its Index. Watch Ballarpur Industries to trade long on a pull back