Business & Investment

D-Street Outlook: Daral Street Week Ahead: Which Sectors Can Lead Market Behavior and Which Sectors Can Be Delayed

In last week’s note, I mentioned the only issue that is otherwise buoyant. Nifty It may currently be overextended on the daily chart. The weeks gone by saw the market consolidate at a higher level. In world affairs, the taper data signal from the Federal Reserve Board of Governance has caused some volatile reactions in the global market, but the Indian market is very resilient and Nifty has been defined. Protected key levels due to range integration.

With a two-day fix, Nifty ended with a net loss of 78.60 points (-0.48%) on a weekly basis. At the beginning of the week, 50 packs were overbought on the daily chart. And PCR over all expiration dates reached near the 1.80 level. The over-expanded nature of the otherwise booming market required one sound fix, which happened later in the previous week.

Given the strength of the United States

Index, metal stocks were hit. However, key sectors and equities that were expected to catch up continued to be sluggish. NS Volatility Has increased. INDIA VIX rose 7.89% in weekly notes to 14.02. In the coming days, it will be important for Nifty to defend the 16,300-16,450 zone and avoid major corrective actions.

Nifty will see the 16,600 and 16,730 levels replayed as possible resistance next week, while support comes in at 16,350 and 16,220 levels. The weekly RSI was at the 70.29 level. It remains in the gently overbought zone. However, the RSI remains neutral and shows no difference in price. Weekly MACD is bullish and above the signal line.

ET contributor

The weekly RSI was 72.11. It marked a new 14-period high, which is a sign of bullishness. The RSI is a little overbought. However, it remains neutral and shows no difference in price. Weekly MACD is bullish and above the signal line. A white body that is strong against candles has appeared. This represents a directional consensus among market participants. A spinning top has occurred in the candle. Pattern analysis showed that breakouts that occurred on daily charts above the 15,900-15,950 level remained valid and very functional. The weekly chart shows that the index continues to rise after eight weeks of horizontal consolidation. They remain on the pattern support trendline drawn from the lows formed in March 2020.

The US dollar index resumed its rise after some range of consolidation. Strengthening the US dollar index is negative for commodity prices. We encourage you to take advantage of next week’s metal stock bounce to make a profit and remove the money from the table. Defense sectors such as FMCG, consumption and IT can be resilient. It is also possible that Bank Nifty, which has been lagging behind, will try to correct the relative performance degradation. In any case, it is advisable to avoid shorts, buy selectively and carefully protect your profits at a higher level.

G50ET contributor

Looking at the Relative Rotation Graph ®, we compared various sectoral indexes with the CNX500 (Nifty500 Index). CNX500 accounts for more than 95% of the free float market capitalization of all listed stocks.

Relative rotation graph (RRG) analysis shows poor performance despite poor performance real estate The index remains within the main quadrant, but appears to be consolidating like a small cap index, with a slight reduction in relative momentum. NS Nifty IT The index remains in the main quadrant. It seems to maintain its relative momentum relative to the wider Nifty500 index. This group is set to relatively exceed the benchmark. The Nifty Metals, Pharma, and PSE indexes are in the weakening quadrant. merchandise And mid cap.

G51ET contributor

NS PSU Bank The index rolls inside the lagging quadrant, as does the media index.Nifty Bank, Auto, and energy The index also remains in the lagging quadrant. The Nifty Services Sector Index is in the improvement quadrant along with the Nifty FMCG and Consumer Price Index. These groups have the potential to deliver resilient performance to a wider range of markets.

Important Note: The RRGTM chart shows the relative strength and momentum of the stock group. The chart above shows the performance relative to the Nifty500 index (wider market) and should not be used directly as a buy / sell signal.


(Milan Vaishnav, CMT, MSTA are consulting technical analysts, founders of EquityResearch.asia and ChartWizard.ae, and are based in Vadodara. milan.vaishnav@equityresearch.asia).

D-Street Outlook: Daral Street Week Ahead: Which Sectors Can Lead Market Behavior and Which Sectors Can Be Delayed

https://economictimes.indiatimes.com/markets/stocks/news/dalal-street-week-ahead-which-sectors-may-lead-market-action-and-which-ones-may-lag/articleshow/85513729.cms D-Street Outlook: Daral Street Week Ahead: Which Sectors Can Lead Market Behavior and Which Sectors Can Be Delayed

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