[Premium] Chartbook Update Highlights
The first thing I want to focus on is the continue strength in large-caps, as shown in the new all-time highs in the Nifty 50.
Click on chart to enlarge view.
Mid-caps on the other hand have started to bounce and confirm the bullish momentum divergence, however, we remain below our risk management level of 19,020 and a downward sloping 200-day moving average.
The same goes for small-caps. Above 7,270 the bounce can continue toward 8,040, but below it prices could fall toward 6,100.
The trends in sector performance continue, with the cap-weighted and equal-weighted Nifty Financial Services Indexes hitting new highs.
Same can be said for the Nifty Bank Index.
...and also IT.
and of course the Fast Moving Consumer Goods Index continues higher.
While we discussed many individual stock setups during the conference call and in previous posts, I want to highlight a few where the reward/risk are attractive and our risk is well-defined at current levels.
Bajaj Finance Ltd. just hit our upside target of 2,755, which is our new risk management target for our next upside price target of 3,520.
Housing Development Finance Corporation is breaking out above our previous price target of 2,035 which now becomes our risk management level. Our next upside target is 2,670.
Dabur India Ltd. has been consolidating for several months above our previous price objective. As long as prices are above 365 we want to be long and taking profits near 455.
The trend in Asian Paints Ltd. is accelerating and has hit our first price objective near 1,460. As long as prices are above this level we want to be long and taking profits at 1,835.
Cipla Ltd. is breaking out of a 2-year range, so as long as prices are above 636 we want to be buyers and taking profits near 746.
Havells India Ltd. is accelerating to the upside. We want to be buying any weakness in this stock as long as it's above 557 and taking profits near 715.
Infosys Ltd. is a stock we want to be buying weakness in as long as prices are above 1,280 and taking profits near 1,510.
Marico Ltd. is a stock we want to be buying as long as prices are above 350 and taking profits near 424.
MRF is just of all-time highs as prices break out of their consolidation and continue their uptrend. As long as prices are above 72,840, we want to be buyers and taking profits at 99,250.
Pidilite Industries is breaking out of a multi-month consolidation to continue its long-term uptrend. As long as prices are above 1,095 we want to be buyers and taking profits near 1,420.
There hasn't been much action in the Commodity/Currency markets, but Mentha Oil futures are flagging tightly above 1,485. If prices break out of this consolidation, they look poised to head back toward 2,000.
Rapseed Mustard futures are also breaking out of a long-term downtrend. If prices are above 4,030, we can be long and target 4,430.
The Bottom Line: The trends we've been discussing for months continue with fresh breakouts across the Financial Services, Consumer Goods, and IT sectors. The stocks above are some of the best reward/risk scenarios in the large-cap space, but you can find all of the updated chartbooks here.
Thanks for reading and let us know if you have any questions.
Allstarcharts Team