[Premium] Three Charts For The Week Ahead

JC Parets
February 7, 2021

We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

Last week we focused on USDINR, Silver, and Nifty Energy.

Let's move into this week's topics.

1.  The first chart on our radar is Nifty Private Bank. The index has claimed new all-time highs. Nifty has been rallying for quite some time now, but the Banks have only now crossed the highs made in 2019-2020. The weekly candlestick is bullish and closed near the weekly high, indicating the inherent strength. The indicator is in a strong bullish regime.

The next level to track on the index is 24,050, with 17,850 acting as the risk management

Click on chart to enlarge view.

2. The second chart we're looking at is that of PSU Bank. The sector has pushed above its resistance of 2,225 and we're watching this space to see if the price is able to sustain at higher levels. If it does, then the next target to watch out for is 2,932 with 2,225 acting as the risk management level.

On a relative basis too, PSU Bank has broken out of its consolidation at lower levels and seems ready for a sharp move upwards.

3. The third chart we're looking at is Nifty Infrastructure. The index has broken out of a long-term overhead supply of 3,840. As we say- "The bigger the base, the higher in space". We're looking at a 12-year breakout that could lead to a significant pick-up in activity in this sector.

We'll be tracking 4,600 as the next target and will maintain the risk management level at 3,840.

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

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