[Premium] Trade Of The Week

DCM Shriram broke out of its resistance after more than one-and-a-half years. This breakout came at a time when the market witnessed a fall, making this breakout all the more impressive alluding to relative strength in the stock against the broader market. The stock is in strong bullish momentum and looks ready for the next leg of the rally.

We are bullish above 428, with a target near 590.

Click on chart to enlarge view.

We published a post on short-term bearish divergence in Nifty50 last week and identified a weak set up in the Financial Services sector. M&M Financial Services has been an underperformer among its peers and has failed to hold above 190. This level holds a lot of price memory and acts as a strong overhead supply zone.

We are bearish below 190, with targets near 145 & 114.

We're being cautious on sectors that are indicating a bearish divergence and focusing our long-ideas on the sectors that have the potential to weather a storm, should we encounter it.

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

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Allstarcharts Team