[Premium] Three Charts For The Week Ahead

Last week we focused on Nifty Small Cap 100 USD, European Banks, & Nifty 50 relative to Gold.

Let's move into this week's topics.

1.  The first chart we're looking at is S&P BSE Dollex 100 index. It is the USD version of the S&P BSE 100 index, which tracks the performance of the top 100 large-cap companies.  

Price is facing resistance at 161.8% Fibonacci extension from the 2008 high-low extension. It first tested this critical level in October 2021 which started the distribution across the market segment.

The messy environment is likely to continue until we get a clear resolution.

2. The second chart we're looking at is S&P BSE Utilities Index. It has been the outperformer sector over the past few weeks. This week it made a new 52-week high on an absolute and relative basis (relative to Nifty 50). The rising 10-year yield acts in favor of the energy sector.

The price action at 14-year highs would be a crucial development to watch out for.

3. The third chart we're looking at is S&P BSE IPO Index. This index has been consolidating below the 261.8% Fibonacci level for over six months. A price move below 11,600 will confirm the breakdown. Further, it'll be a red flag for most constituent new-age growth stocks.

IPO index relative to Sensex topped out in July 2021 and underperformed the market. This post explains how we like to trade IPO stocks and the importance of opening day prices.

In our view, these charts will help set the tone for this week and provide us with 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