[Premium] Three Charts For The Week Ahead

Last week we focused on Shanghai Composite Index, FTSE 100 & Nifty50 relative to Gold.

Let's move into this week's topics.

This week we're taking a closer look at our thematic indices.

1.  The first chart that we're looking at is Bank Nifty. While the index was rather late in joining the rally in Nifty50 a few months back, the price is now back to its all-time high levels.

A halt in momentum can be seen in the negative divergence in RSI even as bullish momentum continues to play out. We're keeping a close watch on this index to see if it breaches the resistance or consolidates in the weeks ahead.

Click on chart to enlarge view.

2. The second chart we're looking at is Nifty Auto. The auto index has moved up sharply over the past two months but is trading near its overhead supply zone.

A breach of 10,400 could take the index towards 12,100.

Relative to Nifty 100, Nifty Auto is bumping up against its resistance which has been tested thrice in the recent past. Will this time be any different? We will have to wait and watch.

3. The third chart we're looking at is Nifty Pharma. Pharma has had a dream run since its 2020 lows, reversing a five-year bearish trend that had been in place since 2015.

With the index now trading near its all-time highs, we are keenly observing the move from here on. An immediate next leg of the rally would mean that Pharma will continue its outperformance going forward. Let's see how this pans out!

In our view, these charts will help set the tone for this week and provide us information on how we should approach the market in the coming weeks.

Also, make sure to check out our other weekly post, "Trade Of The Week."

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team