Week of July 27 to 31

Further to a strong closing on Friday July 17th, at 10901, Nifty opened with a gap up on Monday at 10999 and kept moving up with a gap on Tuesday as well.Nifty formed a new range between 11056 and 11239 in which it kept trading from Tuesday to Friday. For the week, Nifty made a high of 11239 and closed at 11194, inside the new range and a tad lower than 11200.
It was powered by Reliance which moved from 1899 to a high of 2163, a move of 264 points in just 5 trading days!

Nifty has now completed 48 days in the current cycle.It has now extended by 50% over the cycle times of previous two cycles.Fifth sub-cycle has already completed 8 days and is very much in the topping zone.

Strong weekly closing and PCR indicate some more up move but the head room is limited to another 200 to 250 points maximum.Market breadth had started turning negative and an important constituent like Bank Nifty declined by 421 points on Friday.Most FNO counters saw long unwinding and Reliance was propped up mainly by heavy short covering.

We had mentioned about the triple oppositions of Sun-Pluto, Sun-Jupiter and  Sun-Saturn in the last two weeks. We can see here how the world indices had reacted to the astro aspects. 

The Dow had seen two back to back negative days in the last week.

And so does Nasdaq.

German DAX had fallen with a gap...

Despite a roaring bull move, look at the Chinese Index!

 And the Australian Index also is reacting in sympathy...

Our Nifty is holding itself high...Such divergence is a sign of caution...

Fibo time cycles are also advocating caution...

We continue to be bullish on Nifty but after a correction. So our expectation is take profits sooner and have cash in the sidelines for another good buying opportunity.

Have a great week ahead!