INSUBCONTINENT EXCLUSIVE:
In our previous weekly note, we had said that the market will neither make any meaningful headway, nor will it see any major downside
Much on the expected lines, the market continued to consolidate at higher levels
The benchmark index Nifty50 ended the week, with a modest gain of 41.25 points, or 0.36 per cent.
Over the past two weeks, the Nifty50 has
gained just little less than 1 per cent
The market has not seen any runaway rally, but has not lost much ground either.
In the coming week, we expect the market to trade on similar
The market has ended at a fresh high, and it may continue to post marginal highs going ahead, but it is still not expected to make any
significant move and continue to remain vulnerable to bouts of profit taking at higher levels.
Nifty will see the 11,535 and 11,630 levels
work out as immediate resistance in the coming week
Supports should come in lower at 11,380 and 11,200 levels
weekly RSI stands at 73.4555 and it has marked a fresh 14-period week, which is a bullish signal
It trades mildly overbought, but does not show any divergence from price
The weekly MACD continues to remain bullish even as it trades above the signal line.
A white body occurred on the candles
Apart from this, no major formation was observed.
Pattern analysis showed the market is firmly in its primary uptrend and continues to
However, the markets remain mildly overbought on the charts and given the overall structure, Nifty remains vulnerable to profit taking at
higher levels.
The market may keep posting fresh marginal highs, but it will be unwise to keep chasing the momentum; one has to remain
vigilant at higher levels
Though dips may be used to make purchases, profits should be guarded at higher levels
A cautious view is advised for Monday.
In the study of Relative Rotation Graphs, we compare various sectoral indices against CNX500, which
represents over 95 per cent the free float market-cap of all the listed stocks.
In the coming week, we will continue to see relative
outperformance from the pharma, FMCG and energy stocks
These sectors are likely to see much better relative performance when benchmarked against the general market
We will also see continued improvement in the relative momentum in the midcap and smallcap universe
Broader market indices such as CNX100 and CNX200 are seen losing momentum.
Consistent loss of momentum was observed in financial services,
consumption and services sector stocks on a weekly basis
Some sporadic and stock-specific outperformance may be seen from the metals and realty packs, but no major show is expected from these
sectors along with the auto pack.
Important Note: RRGTM charts show you the relative strength and momentum for a group of stocks
In the above chart, they show relative performance as against the Nifty index and should not be used directly as buy or sell signals.
