[Premium] Three Charts For The Week Ahead

JC Parets
October 11, 2022

We retired our "Five Bull Market Barometers" in 2020 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 Nifty 50 vs Dow 30, $INDA/$EEM,Nifty Pharma/Nifty 100.

Let's move into this week's topics. We have big, important moves to track this week.

1. The first chart we're looking at is Nifty 50. Nifty had a flat year-to-date performance compared to a -20% decline in global equity indices. It shows the relative strength of Nifty. Sometimes the best move is no move. It has worked out well for Nifty with sectoral rotation between the Financial, Industrial and Consumption sectors. We're expecting 16,800 as the support, a breach of that it'll open up the downside level of 15,500. The resistance at the top would be at 18,300.

Click on the chart to zoom in.

2. The second chart we're looking at is ASC Leisure Index. With ongoing consolidation in the Nifty 500, this sector has been the clear mover. Hotels stocks have been the clear outperform from this group. With the multi-year breakout above 2018 highs, the primary trend remains bullish.

3. The third chart we're looking at is MCX Crude Oil. Last week it retested the multi-year breakout level at 6,419 and gained over 16%. As long as it sustains above this level, the primary trend remains on the upside, with a target near 10,285.

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