Dalal Street Week Next: Time to get out of hot themes, enter emerging plays

After six weeks of consolidation and trading in the stipulated range, the markets eventually erupted from this composition and finished the week with the benefit. In the last five sessions, the markets have largely a positive business, which is higher. The trading range was wider than expected; The Nifty trades in the 829-point series in the last few days.

Instability took a back; India Wicks fell 9.40% on a weekly basis to 12.39. When trending more throughout the week, the headline index closed with a net weekly benefit of 525.40 points (2.09%).

The breakout that took place in the past week increases the support level for the index. Now, the most immediate support level has been drawn to 25100-25150 zones, which have entered the markets to move on to the high. As long as the Nifty keeps its head above this zone, it continues to move further. In the coming weeks, we are also likely to see a different shift in the leadership, leading the Bottom ting-out process. This will also mean that the focus should now be on profits in the last week.

When protecting the benefits, it will be wise to focus in areas where there is a possibility of seeing the strength moving from here.

The levels of 25750 and 26000 are likely to act as a potential resistance level for next week. Support comes at 25,300 and 25,000 levels. The trading range is likely to remain wider than normal.

Weekly RSI is 64.58; It remains neutral and does not show any variation against the price. Weekly MACD is booming and its signal is above line. A large white candle emerged, which shows the director’s power displayed in the markets throughout the week.

The pattern analysis of the weekly chart shows that the Nifty was initially crossed above the growing trendline pattern resistance. The trendline started at 21150 and joined the subsequent rising bottoms. However, the Nifty has been integrated above the breakout point for six weeks, eventually its move resumes. The index has pushed its level of resistance high; As long as the index is above 25000 levels, this breakout will be valid.

It is also important to note that the Nifty’s relevant strength (RS) line is trying to oppose its way. This can lead to a frontline index, which improves its related influence against widespread markets. Along with this shift in the relevant strength, it is also strongly recommended that one will consider protecting the benefits in areas that have increased significantly over the past few weeks.
Leadership is likely to change in the coming weeks, which makes the moving areas more important than ever. When protecting the benefits, new purchases must begin in areas that show improvement in motion and related power. While some consolidation cannot be ruled out, a positive outlook is suggested for the next week.

In our appearance on the Related Rotation Graph®, we compared different sectors against the CNX500 (Nifty 500 index), representing more than 95% of the free-float market cap of all listed shares.

Related Rotation Graph (RRG) shows that only two field indicators, Nifty Midcap 100 and Nifty PSU Bank Index, are within the leading quarters. While the midcap index is firmly rotating, the PSU bank index is left with its respective pace. Both of these groups are likely to carry on relatively widespread markets.

The Nifty PSE index has been turned into a weak quadrant. As a result, the area may slow down its related operation. The Nifty commodities, financial services, infrastructure, bank failure and service sector index are also within a weak quadrilateral.

The Nifty usage index has been turned into a quadrant. The FMCG index and pharma index also remain within this quadrant. The Nifty Metal Index is also located within the legging quadrant; However, it is sharply improving its relative pace compared to widespread markets.

The Nifty Realty, Media, IT, Auto and Energy Raza Indicators are located within the leading quarters. These groups are likely to assume leadership in the coming weeks as they continue to improve their related pace and power compared to the comprehensive Nifty 500 index.

Important Note: RRGTM charts show the relative strength and motion of a group of stocks. In the above chart, they show relevant performance against the Nifty 500 index (extensive markets) and should not be used directly as signs of purchase or selling.

Milan is the founder of Vaishnav, CMT, MSTA, Consulting Technical Analyst and EquitySarch.sia and Chartwizard.AE and located in Vadodara. It can be reached at Milan.Shishnav@equityresearch.asia