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Israel vowed on Sunday to stop an aid boat carrying Greta Thunberg and other activists on board from reaching Gaza.

As of Sunday evening, the UK-flagged civilian vessel was north of Egypt in the Mediterranean Sea, slowly approaching the coast of Gaza. The “Madleen” is part of the Freedom Flotilla Coalition, an organization that has campaigned against Israel’s blockade of Gaza and tried to break the siege by boat.

“But of course none of those risks are even remotely as high as the risk that Palestinians are facing everyday just by trying to survive.”

Defense Minister Israel Katz reiterated that the Madleen, operated by the Freedom Flotilla Coalition, would not make it to the besieged enclave.

“I have instructed the IDF to ensure that the ‘Madleen’ flotilla does not reach Gaza,” said Katz in a statement, referring to the name of the ship.

Katz warned the ship that “you’d better turn back – because you will not reach Gaza.”

“We are still on our way to Gaza. There’s no turning back, and we’re hoping to make it into Gaza within two days,” Acar said.

The coalition campaigns to end Israel’s blockade of Gaza and has tried to reach the enclave several times in the past

After an 11-week blockade that prevented any humanitarian aid from entering Gaza, Israel has begun allowing a trickle of aid in once again.

But it is only a fraction of the aid that entered the enclave before the war, with humanitarian organizations warning of a worsening humanitarian crisis and the growing risk of widespread famine.

Francesca Albanese, the United Nations Special Rapporteur for the occupied Palestinian territories, said on social media that the flotilla carries more than food.

“It is not only the aid, it is the HUMANITY THEY CARRY. For all of us,” she said.

The crew, which has publicized the location of the ship with an online tracker, began preparing for the possibility of interception by the Israeli military.

Among those joining the crew are Rima Hassan, a French member of the European Parliament, and “Game of Thrones” actor Liam Cunningham.

“From both a legal and moral standpoint, Israel has no right to intercept this vessel,” the group said in a statement.

“The people of Gaza, under siege, starving, and facing the threat of annihilation, have the legal right to decide who enters their territories.”

Last month, another vessel from the Freedom Flotilla Coalition came under what its organizers said was an Israeli drone attack off the coast of Malta in international waters. The group did not provide evidence that the drone was Israeli, while the Israeli military has declined to comment on the alleged attack.

The ship, the “Conscience,” was heading to Malta, where a large contingent of activists were due to board before it departed for Gaza, more than 1,000 miles away, but had not made it into port, the group said.

This post appeared first on cnn.com

The Israeli military recovered the body of de facto Hamas leader Mohammed Sinwar in a tunnel underneath the European Hospital in southern Gaza, the Israel Defense Forces (IDF) said Sunday.

The IDF said it made the announcement after the body went through an identification process.

Sinwar is the younger brother of former Hamas leader Yahya Sinwar, who was killed by the Israeli military in southern Gaza in October.

His death marks the latest in a string of assassinations that have dealt a serious blow to the group’s top brass but are yet to break its grip on power in the besieged enclave.

The elusive Sinwar was targeted in a massive airstrike on the hospital in Khan Younis on May 13, a day after Hamas released Israeli-American soldier Edan Alexander.

At the time, the IDF said it had struck “Hamas terrorists in a command-and-control center” in underground infrastructure at the hospital.

But it took more than two weeks for Israel to say that it had definitively killed Sinwar in the strike.

Prime Minister Benjamin Netanyahu made the announcement on the 600th day of the war two weeks ago.

“We changed the face of the Middle East, we pushed the terrorists from our territories, we entered the Gaza Strip with force, we eliminated tens of thousands of terrorists, we eliminated (Mohammad) Deif, (Ismail) Haniyeh, Yahya Sinwar and Mohammed Sinwar,” Netanyahu said in a speech at the Knesset, Israel’s parliament.

The attack killed 28 Palestinians and wounded more than 50 others, the Palestinian Ministry of Health said after the strike.

This is a developing story and will be updated.

This post appeared first on cnn.com

The Freedom Flotilla Coalition (FFC) has said the Israeli military has boarded its Gaza-bound aid ship carrying Greta Thunberg and that communication with the boat has been lost.

The group posted a photo on Telegram early Monday local time, showing members of the crew of the “Madleen” sitting inside the boat wearing lifejackets and with their hands in the air. No Israel Defense Force soldiers can be seen in the image.

In an earlier post, the FFC said the ship had come “under assault in international waters.”

“Quadcopters are surrounding the ship, spraying it with a white paint-like substance. Communications are jammed, and disturbing sounds are being played over the radio,” FFC said on its Telegram channel.

Israel has repeatedly vowed to stop the aid boat from reaching Gaza.

“I have instructed the IDF to ensure that the ‘Madleen’ flotilla does not reach Gaza,” Israeli defense minister Israel Katz said on Sunday.

In a video livestreamed from the boat and posted by the FFC, activist Yasmin Acar showed a white substance on the deck, saying it had been dropped on the vessel. Acar was later heard saying it was affecting her eyes. Before the live stream ended, Acar could be heard saying the Israeli military was communicating with the board

Israel vowed on Sunday to stop the aid boat carrying Thunberg and other activists on board from reaching Gaza.

The “Madleen” is part of the Freedom Flotilla Coalition, an organization that has campaigned against Israel’s blockade of Gaza and tried to break the siege by boat.

Climate activist Thunberg, “Game of Thrones” actor Liam Cunningham and Rima Hassan – a French member of the European Parliament – are among those on the Madleen.

Israel’s Foreign Ministry posted video on X showing a Navy staffer issuing what appears to be a radio message to the vessel.

“The maritime zone off the coast of Gaza is closed to maritime traffic,” the unidentified Navy staff member is heard saying. She is later heard saying aid needs to be delivered through “established channels.”

In a statement, the ministry said “unauthorized attempts to breach the blockade are dangerous, unlawful, and undermine ongoing humanitarian efforts.”

“We call on all actors to act responsibly and to channel humanitarian aid through legitimate, coordinated mechanisms, not through provocation,” the ministry added in a statement on Monday local time.

This is a developing story and will be updated.

This post appeared first on cnn.com

North Korea has moved a new warship damaged in a botched launch to a port near the Russian border, a move analysts say could point to a role for Moscow in repairing the vessel.

Satellite images taken Sunday by Maxar Technologies show the 5,000-ton destroyer, as yet unnamed, in a drydock in the port of Rajin, part of North Korea’s Rason special economic zone, which abuts its short border with Russia.

While not a major shipbuilding facility like the shipyard in the northeastern city of Chongjin where the launching accident occurred, Rajin has facilities for modest repairs and maintenance, said Yu Jihoon, director of external cooperation and an associate research fellow at Korea Institute for Defense Analyses.

And its proximity to Russia “makes it a key node for North Korea’s efforts to deepen economic and potentially military ties with Moscow,” Yu said.

A 2024 report from the Modern War Institute at West Point, the United States Military Academy, calls the Rason economic zone “a significant point of North Korea–Russia cooperation, recently implicated in North Korean arms shipments to Russia for use in Ukraine.”

The warship was damaged on May 21, when during its launch the stern went into the water but the bow stayed stuck on land. The ship turned on its side in the botched maneuver.

North Korean leader Kim Jong Un, who attended the launching ceremony, ordered the destroyer to be repaired by the late-June plenary session of the ruling Workers’ Party, calling it a matter of national honor.

State media reported last week repairs at the Rajin drydock would take seven to 10 days, meeting Kim’s timeline.

Kim said it’s possible the ship’s sonar and depth finders, located on the bow section, were damaged during the botched launch.

Such damage would likely require foreign help to repair, he said.

“North Korea is believed to lack the technology for sonar systems, so they likely imported them from China or Russia,” Kim said.

“The vessel’s external damage doesn’t seem significant, and the main issue seems to be the water flooding into the warship” was the assessment of the South Korean military, Yu said.

Internal spaces of the ship, as well as machinery and electronics, will have to be purged of sea water and dried salt in the repair process, analysts said.

Yu said Russian assistance in the repair process was a possibility, but it would be difficult to verify if it only involved engineers and not the movement of major pieces of equipment.

North Korea is believed to have sent millions of munitions, including missiles and rockets, to Russia over the past year, according to watchdog the Multilateral Sanctions Monitoring Team.

In return, Russia has provided North Korea with valuable weapons technologies, including air defense equipment, anti-aircraft missiles and electronic warfare systems as well as refined oil, the watchdog said last month.

This post appeared first on cnn.com

Israel’s blockade of Gaza may have been partially lifted – and a new US-backed plan to deliver aid has begun. But there are multiple indications that the plight of Gazans is rapidly worsening.

Restrictions imposed by the Israeli military on aid routes, ongoing airstrikes, a lack of security and the continuous displacement of tens of thousands of people are aggravating an already alarming situation, according to the UN and other aid agencies. The supplies that do get in risk getting looted.

“People in Gaza are starving. This demands the urgent opening of all crossings and allowing unimpeded access for humanitarian organizations to deliver aid at scale, through multiple routes,” the UN Office for the Coordination of Humanitarian Affairs (OCHA) said in its latest assessment.

The number of children in Gaza with acute malnutrition is rising, the UN reported Saturday, while a lack of fuel threatens to close hospitals that are still operating.

The Israeli agency handling the inspection of aid going into Gaza, the Coordinator of Government Activities in the Territories (COGAT), said Saturday that 350 trucks containing humanitarian aid had entered the Gaza Strip through the Kerem Shalom crossing in the last week – less than 20 per cent of the volume of goods getting into Gaza before the conflict.

And even the aid that gets in frequently does not make it to the most desperate. UN agencies report continuing difficulties with getting distribution routes within Gaza agreed with the Israeli military. OCHA said that out of 16 truckloads ready for distribution last Thursday, five were rejected, including fuel and water, and six failed to reach their destination.

Additionally, the looting of aid convoys in Gaza has risen sharply in recent weeks.

“Operations have faced unprecedented levels of insecurity and a very high risk of looting, with partners reporting that most looting incidents are conducted by desperate civilians,” according to OCHA.

Nahed Shehaibar, head of the Private Transport Association in Gaza, said on Saturday that transport of aid had been suspended “for the third consecutive day due to repeated attacks on trucks, including gunfire that has damaged and put several trucks out of service.”

Last week the association reported that one driver was killed and another injured while trying to deliver aid, but Shehaibar said on Sunday that 11 trucks of commercial goods had reached merchants in Deir al-Balah in central Gaza successfully.

On Sunday, GHF said it operated three distribution sites – two in southern Gaza and one in central Gaza – to hand out more than 17,000 boxes of food. In addition, GHF said in its daily update that it gave more than 10,000 meals to community leaders north of Rafah in what the organization called a pilot test of “direct-to-community distribution.”

But many people who went to the Netzarim site in central Gaza left empty-handed.

Nader Musleh, who had walked from Al-Mawasi several kilometers away, agreed.

“Some people took five or 10 boxes, and there’s no organization at all,” he said.

Mohammad Abu Akouz was one of several civilians who alleged that some people were injured after coming under Israeli tank fire as they made their way to the site.

GHF said it had been unable to open its sites on Saturday, accusing Hamas of making threats against its operations, including against drivers and Palestinian workers. It said the threats had made it impossible to proceed without putting innocent lives at risk.

The drivers had been scheduled to move 180 employees to the three distribution sites, he added.

GHF said on Friday that it had distributed more than 140,000 boxes of food, with each box intended to feed a family for half a week. The boxes contain pasta, lentils and cooking oil, among other products. GHF says its goal is to distribute boxes containing enough food for 4.5 million meals each day.

After last week’s shootings, GHF appealed to people not to arrive at distribution points “before the official opening time or gather near the gates ahead of schedule. This is for your safety and the safety of others.”

The Israel Defense Forces (IDF) said Saturday in a post on X that gathering outside distribution centers outside of announced hours was “strictly prohibited,” and warned that the areas around the aid hubs were closed military zones between 6 p.m. (11 a.m. ET) and 6 a.m. (11 p.m. ET).

The UN says that the use of the Israeli and American-backed GHF has militarized aid distribution and is inadequate for the huge task of feeding families in Gaza. GHF has no presence in northern Gaza.

In its latest assessment, OCHA said that 90 per cent of families in Gaza lack the cash needed to buy what little food remains available in markets. “Meat, dairy, vegetables and fruit are nearly absent from people’s diets,” it said.

Half of the community kitchens in Gaza have been forced to stop cooking due to lack of supplies or displacement orders, according to OCHA.

The UN Relief and Works Agency (UNRWA) – the main agency for supplying aid in Gaza – said Saturday that a nutrition study had found that the percentage of children under 5 suffering from acute malnutrition had risen from 4.7% in the first half of May to 5.8% in the second half of the month.

UNRWA said the number of children forced to fend for themselves had pushed an increasing number into “dangerous survival strategies. Children are reported working on the streets, participating in looting or gathering within large crowds in search of food supplies at insecure distribution points.”

It’s not just food that is running chronically short.

He added that “a large number of the wounded cannot be treated due to the lack of blood supplies and medical equipment,” and medical staff faced difficult choices about which patients to save.

The Palestinian Ministry of Health said Sunday that Al-Shifa Hospital and the Baptist Ahli Hospital, both in northern Gaza, were at risk of shutting down service within 24 hours. It said that would mean the collapse of what remains of the healthcare system in Gaza City.

In the south, the Health Ministry said the Nasser Medical Complex was operating on a limited fuel supply that will last no more than two days.

This post appeared first on cnn.com

Acclaimed Ukrainian opera singer Vladislav Horay has been killed while on a volunteer mission to the Sumy region, where a frontline battle for territory continues.

Horay was a soloist with the Odesa National Opera, which said in a statement that he was a “world-class tenor” and “Honored Artist of Ukraine,” whose voice was known around the globe.

“Tragic news has shaken the entire artistic community of Ukraine,” the opera house said in a post on Facebook on Sunday. “(Horay) was not only a talented performer — he was an example of strength, dignity, and kindness in life.”

The post did not say how Horay died.

According to a June 5 post on Horay’s Facebook, he was raising money for a Ukrainian naval unit.

Horay joined the Odesa National Academic Theater of Opera and Ballet in 1993 and performed in the USA, Britain, Canada and many other countries, according to its website. He also toured Britain and performed at London’s Royal Albert Hall.

His last performance was just a day before he died, according to the Odesa opera house, which uploaded a video of Horay singing the Neapolitan song “O Sole Mio.”

“Today, we share this video with you. It is not just a performance. It is farewell. It is the last concert. It is the last gift from a singer who lived for the stage and left a piece of his soul there.”

The northeast Sumy region where the Opera house said Horay was killed, has been a fierce battleground in the Russia-Ukraine war. The Opera said he was there on a volunteer mission, but did not elaborate.

Russian forces have in recent weeks made incremental progress advancing towards the capital of the region, also called Sumy.

While capturing the region’s capital is likely beyond what Moscow is setting out to do, the move underlines the pressure Kyiv is under, from the northern border to the Black Sea.

This post appeared first on cnn.com

Procter & Gamble will cut 7,000 jobs, or roughly 15% of its non-manufacturing workforce, as part of a two-year restructuring program.

The layoffs by the consumer goods giant come as President Donald Trump’s tariffs have led a range of companies to hike prices to offset higher costs. The trade tensions have raised concerns about the broader health of the U.S. economy and job market.

P&G CFO Andre Schulten announced the job cuts during a presentation at the Deutsche Bank Consumer Conference on Thursday morning. The company employs 108,000 people worldwide, as of June 30, according to regulatory filings.

P&G faces slowing growth in the U.S., the company’s largest market. In its fiscal third quarter, North American organic sales rose just 1%.

Trump’s tariffs have presented another challenge for P&G, which has said that it plans to raise prices in the next fiscal year, which starts in July. The company expects a 3 cent to 4 cent per share drag on its fiscal fourth-quarter earnings from levies, based on current rates, Schulten said. Looking ahead to fiscal 2026, P&G is projecting a headwind from tariffs of $600 million before taxes.

P&G, which owns Pampers, Tide and Swiffer, is planning a broader effort to reevaluate its portfolio, restructure its supply chain and slim down its corporate organization. Schulten said investors can expect more details, like specific brand and market exits, on the company’s fiscal fourth-quarter earnings call in July.

P&G is projecting that it will incur non-core costs of $1 billion to $1.6 billion before taxes due to the reorganization.

“This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years,” Schulten said. “It does not, however, remove the near-term challenges that we currently face.”

P&G follows other major U.S. employers, including Microsoft and Starbucks, in carrying out significant layoffs this year. As Trump’s tariffs take hold, investors are watching Friday’s nonfarm payrolls report for May for signs of whether the job market has started to slow. While the government reading for April was better than expected, a separate reading this week from ADP showed private sector hiring was weak in May.

Shares of P&G fell more than 1% in morning trading on the news. The stock has fallen 2% so far this year, outstripped by the S&P 500′s gains of more than 1%. P&G has a market cap of $407 billion.

This post appeared first on NBC NEWS

One day after seeing their largest-ever one-day drop, Tesla shares recovered some losses Friday as the spat between CEO Elon Musk and President Donald Trump that exploded into public view Thursday took appeared to take a breather heading into the weekend.

Shares in the electronic vehicle maker gained as much as 5% amid broader market gains following a report showing the U.S. added more jobs in May than forecast.

Even with Friday’s rally, Tesla shares are still down approximately 21% in 2025 — a decline that accelerated last week following Musk’s departure from the Trump administration.

Musk, the world’s richest person and until recently Trump’s cost-cutter-in-chief, said last week he was leaving as the head of his Department of Government Efficiency project to refocus on his businesses.

Those companies — Tesla, the satellite and space-launch company SpaceX, the social media platform X and the brain tech startup Neuralink — have faced growing criticism as Musk oversaw deep cuts to the federal workforce. Tesla sales around the world have fallen sharply this year.

Trump and Musk traded escalating insults Thursday afternoon, with the president threatening on his Truth Social platform to ‘terminate Elon’s Governmental Subsidies and Contracts.’ Yet there was no sign of any follow through on the threat Friday. At the same time, a senior White House official told NBC News that Trump is “not interested” in a call with Musk.

Tesla stock closed more than 14% lower Thursday. The automaker is Musk’s only publicly traded company — and one that the president tried to boost as recently as March, drawing sharp criticism on ethical grounds for turning the White House driveway into a car showroom just as the company’s stock was plunging.

The Trump-Musk rift has dented Tesla’s stock anew after Musk slammed the GOP spending bill as ‘a disgusting abomination” in a post on X last week.

‘Bankrupting America is NOT ok!’ he wrote in another post, part of an ongoing barrage of public ridicule.

Musk began speaking out after an electric-vehicle tax credit that would help incentivize Tesla purchases was not included in the bill, which is estimated to add $2.4 trillion to the national debt over 10 years. Musk has lobbied congressional Republicans for that tax credit, NBC News reported Wednesday.

‘I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, doesn’t decrease it, and undermines the work that the DOGE team is doing,’ Musk told ‘CBS Sunday Morning’ over the weekend.

As Trump spoke about the former DOGE chief in the Oval Office on Thursday alongside German Chancellor Friedrich Merz, Musk began firing off dozens of posts on X.

‘Whatever,’ he wrote. ‘Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill. In the entire history of civilization, there has never been legislation that both big and beautiful. Everyone knows this!’

Trump pushed back further on Musk’s criticism.

“Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people. He knew everything about it. He had no problem with it,” he said during the meeting with Merz. “All of a sudden he had a problem, and he only developed the problem when he found out that we’re going to have to cut the EV mandate because that’s billions and billions of dollars, and it really is unfair.”

As Trump continued speaking, Musk posted another comment: ‘False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!’

Tech analyst Dan Ives said the EV tax credit isn’t the main factor behind Tesla’s stock slide. “The reason Tesla stock’s off the way it is — and I think overdone — is because of the view that this means that Trump is not going to play nice when it comes to regulatory” issues, he told CNBC on Thursday. The feud between the two men is “not what you want to see as a Tesla shareholder,” Ives added.

‘Where is this guy today??’ Musk added Thursday in yet another post, resharing a compilation of Trump’s past tweets including one in which Trump called the federal debt ‘a national security risk of the highest order.’

‘Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,’ Musk added on social media. ‘Such ingratitude.’

Musk is the richest person on the planet, according to the Bloomberg Billionaires index. His net worth of $368 billion is $125 billion more than that of Meta CEO Mark Zuckerberg, who is ranked second. Musk spent $250 million supporting Trump’s most recent campaign.

The president quipped from the White House that he thinks Musk ‘misses the place.’

‘I think he got out there and all of a sudden he wasn’t in this beautiful Oval Office,’ Trump said. ‘He’s got nice offices too, but there’s something about this one.’

The president’s own publicly traded company, Trump Media & Technology Group, has also suffered in the market. Shares of the Truth Social parent company fell more than 8% Thursday and are down over 41% so far this year.

This post appeared first on NBC NEWS

A lot has happened in the stock market since Liberation Day, keeping us on our toes. Volatility has declined significantly, stocks have bounced back from their April 7 low, and the economy has remained resilient.

If you’re still feeling uncertain, though, you’re not alone. The stock market’s in a bit of a “wait and see” mode, going through a period of consolidation as it figures out its next move. 

The S&P 500 ($SPX) is hesitating to hit 6000 despite reclaiming its 200-day simple moving average (SMA). This indecision can leave investors feeling stuck in “no man’s land.” And it’s not just the S&P 500, either; most major indexes are in a similar scenario, except for small caps, which have been left behind. This could be because the market has priced in a delay in interest rate cut expectations.

Tech Is Taking the Lead

If you drill down into the major indexes, there is some action you shouldn’t ignore. Tech stocks have started to take the lead again, although momentum has been lacking. Over the past month, the Technology sector has been up over 4%.

FIGURE 1. S&P SECTOR ETF PERFORMANCE OVER THE LAST 30 DAYS. Technology is the clear leader with a gain of over 4%.Image source: StockCharts.com. For educational purposes. It’s encouraging to see tech stocks regain their leadership position. Tech is a major force behind the S&P 500 and Nasdaq Composite ($COMPQ). The daily chart of the Technology Select Sector SPDR Fund (XLK) shows the ETF has been trying to break above a consolidation range it has been stuck in since mid-May.

FIGURE 2. DAILY CHART OF XLK. Although the ETF has barely broken above its consolidation range, we need to see greater momentum to confirm a follow through to the upside.Chart source: StockCharts.com. For educational purposes.Nothing is standing in the way of XLK reaching its all-time high, but the momentum isn’t quite there yet. The 14-period relative strength index (RSI) is below 70 and looks to be stalling, pretty much in line with the overall stock market’s price action.

So, what’s the market waiting for? Maybe a catalyst, like Friday’s non-farm payrolls report. This week’s JOLTS, ADP, and ISM Services data didn’t move the needle much, but the NFP report could be the game changer.

S&P 500 Technical Forecast

Where could the S&P 500 go from here? Let’s dive into the weekly chart.

FIGURE 3. WEEKLY CHART OF THE S&P 500. The index is spitting distance to its all-time high. A break above the November high would clear the path to new highs.Chart source: StockCharts.com. For educational purposes.

The S&P 500 broke above its 40-week SMA on the week of May 12 and has held above it. However, it has been in a consolidation for the last month, similar to that of XLK.

The S&P 500 is approaching its November high of 6017. A break above it could push it toward new highs. On the flip side, if it slides below the 40-week SMA, it would be a cause for concern and could mean the May 12 gap-up could get filled. Keep an eye on the 5688 level. If the S&P 500 pulls back close to that level and turns around, it would be a healthy correction — an opportunity to buy the dip. A further downside move would mean exercising patience or unloading some of your positions.

What’s Going On With Gold and Bonds?

While stocks are grinding sideways, gold prices are rising, and bond prices are showing green shoots. This price action tells us that investors could be bracing for slower growth ahead. It’s not something to panic about — just something to watch.

You can get a quick look at what gold, bonds, and all the major indexes are doing by checking out the StockCharts Market Summary page and Your Dashboard.

So, what should you do?

Hold, add, or fold? That’s the big question. The market needs time to digest a lot, from economic data to geopolitical risks and policy headlines. Keep checking in and monitor the sectors, observe index performance, and note how other areas of the market, such as precious metals and bonds, are reacting.


 Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

After consolidating for two weeks, the Nifty finally appeared to be flexing its muscles for a potential move higher. Over the past five sessions, the Nifty traded with an underlying positive bias and ended near the week’s high point while also attempting to move past a crucial pattern resistance. The past week saw the Index oscillating in the 527-point range, which was in line with the previous weeks. The volatility also cooled off; the India VIX came off by 9% to 14.63 on a weekly basis. While staying largely in a range trading with a positive bias, the headline Index closed with a net weekly gain of 252.35 points (+1.02%).

Over the past couple of weeks, the Nifty has traded in a well-defined range created between 24500-25100 levels. This would mean that the markets would remain devoid of directional bias unless they take out 25100 on the higher side or violate the 24500 level. Despite visibly strong undercurrents, staying reactive to the markets rather than getting predictive would be prudent. Although there are heightened possibilities of the Nifty taking out the 25100 level, we must consider it as resistance until it is taken out convincingly.

The coming week is set to see a stable start; the levels of 25150 and 25400 are likely to act as resistance points. The supports come in at 24800 and 24500. The trading range is expected to get wider than usual.

The weekly RSI is 60.94; it continues to remain neutral and does not show any divergence against the price. The weekly MACD is bullish and remains above its signal line. A strong white candle emerged; this shows the bullish trend that the markets had during the week.

A pattern analysis of the weekly chart shows that the Nifty resisted the upward rising trendline that began from the low of 21350 and joined the subsequent rising bottoms. The Nifty has attempted to penetrate it after resisting it for a couple of weeks.

Overall, the coming week may see the markets trading with an underlying bullish bias. However, for this to culminate in a good trending move, the Index will have to take out the 25100-25150 zone convincingly on the upside. Until this happens, the markets may continue to consolidate in a broad trading range. Unless there is a strong move that surpasses the 25100-25150 zone, one must consider this level as an immediate resistance point. Some pockets have run up too hard over the past few days; one must also focus on protecting gains at current levels rather than chasing the up moves. Fresh purchases must be kept limited in stocks with strong technical setups and the presence of relative strength. A cautiously positive approach is advised for the coming week.


Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against the CNX500 (NIFTY 500 Index), representing over 95% of the free-float market cap of all the listed stocks. 

Relative Rotation Graphs (RRG) show that the Nifty PSU Bank Index continues to build on its relative momentum while staying inside the leading quadrant. It may continue outperforming the markets relatively. The Infrastructure, Consumption, and PSE Index are also inside the leading quadrant but are seen giving up on their relative momentum.

The Nifty Bank Index has rolled inside the weakening quadrant. The Nifty Services Sector, Financial Services, and Commodity Indice are also inside the weakening quadrant. Individual performance of components from these groups may be seen, but overall relative performance may slow down over the coming weeks.

The Nifty FMCG Index has rolled inside the lagging quadrant. The Nifty Metal and Pharma Indice are languishing in this quadrant. The Nifty IT index is also inside the lagging quadrant but is seen in a strong bottoming-out process while improving its relative momentum.

The Nifty Energy, Media, Realty, and Auto Indices are inside the improving quadrant and may continue improving their relative performance against the broader markets.


Important Note: RRG charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  


Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae