Dalal Street Week ahead: Time to get out of full themes, entering emerging games

After six weeks integration and trade in a mean range, the market Finally exploded from this formation and ended the week with profits. Within the past five sessions, markets are largely sold in positive undercurren, which keeps the edge higher. The trading range is wider than expected; THE APPEARANCE Sold in an 829-point range over the previous days.

ridicule took a backseat; India VIX fell to 9.40% to 12.39 on a weekly basis. While trending is higher throughout the week, the headline index closes a net per week gain 525.40 points (2.09%).

Breakout occurring last week the support level is higher for the index. Now, the quickest support level dragged higher to 25100-25150 zone, the one initiated in markets higher. As long as the repairs prevent the head of this zone, it is likely to continue to move higher. In the coming weeks, we are likely to see a separate leadership shift, with sectors in the process of humiliation. It also means that one should focus on getting the income in spaces running harder last week.

While protecting profits, it is wise to shift the study of sectors that are likely to see more powerful energy to come out of here.

Levels of 25750 and 26000 are likely to act as potential resistance levels for the coming week. Supports come at 25,300 and 25,000 levels. Trading range is more likely to remain larger than usual.
The weekly RSI is 64.58; It remains neutral and does not show variation against price. The weekly MAACD is cold and staying on top of its signal line. A large white candle emerges, indicating the strong direction shown in markets throughout the week.
The analysis of the weekly chart pattern shows that the measures were crossed above the standard pattern of a standard pattern of a standard pattern starts this trend from the lower 21150 and participated in the subsequent climb. However, good integration united with the breakout point for six weeks before continuing to move higher. Index pushes the level of resistance it higher; As long as the index remains above 25000 levels, this breakout will remain valid.

It is also important to note that relative to readty (RS) intends to reverse its trajectory. This may lead to the frontline index developing relative to this done in the wider market. Along with this transfer of powerful strength, it is also strongly recommended that one can think of protection of sectors risen in the last few weeks.
Leadership in the coming weeks are likely to change, which makes rotating sectors more important than before. While protecting profits, new purchases should be initiated by sectors showing the development of momentum and relative strength. While some aggregate cannot rule, a positive view is suggested for the coming week.

In our view of relative graphs® graphs, we compare different sectors against CNX500 (Good 500 Index), which represents over 95% of the free free-float market cap on all listed stocks.

Rotation rotation (RRG) rotation shows that only two sector index, good midcap 100 and the Good psu bank indexis within the lead quadrant. While Midcap Index continues to rotate the force, the PSU bank index appears to quit its momentum relative. These two groups are likely to exceed the wider market.

The good index of the PSE PSE surrounds within the weak quadrant. This may result in the sector that slows its relative. The beautiful commodity, financial services, infrastructure, bankruptcy, and the Services Sector Index are also within weak quadrant.

The good consumption index consumption moves the missing quadrant. The FMCG index and the pharma index continues to be weak inside this quadrant. The better metal index located within the lost quadrant; However, it is very improved with relative momentum compared to the wider market.

The better realty, media, these, auto, and individual indicators are located within the lead quadrant. These groups are likely to be in charge of coming in the coming weeks as they continue to improve their relative momentum and force compared to the wider range of 500 indexes.

Important Reminder: RRGTM charts show relative strength and momentum of a group of stocks. In the above chart, they show the relative achievement against the NIFTY500 Index (wider market) and should not be used directly as buy signals or sell signals.

Milan Vanishnav, CMT, MSTA, a technical analyst consultant and founder of equityresearch.asia and chartwizard.ae and based on Vadodara. He can be reached at [email protected]