Monthly Charts in Focus - October 2022
Monthly charts are always a great way to redirect the mind after the short term moves we focus on during the month.
Today we're just going to touch upon some of these charts and discuss the rest of the gang in our conference call coming Wednesday! If you haven't already, you can register and join us as we go through a roster sheet of charts!
In October, Nifty 50 had a highest-ever monthly close with a gain of 5.37%. It continues to maintain relative strength against the global markets. The primary remains up until it trades above 15,700.
The Nifty Midcap index continues to knock the resistance from the Fibonacci level at 31,783 for the 8th time. That's a lot of patience. Midcaps are the 2nd largest market capitalization group. The year-long base breakout would be bullish to resume strength for the next leg of the upside.
In the financial sector, PSU Banks are the strongest group. This month Nifty PSU Bank index closed at a new 4.8 years high. It comes with the participation of top stocks like the State bank of India, Bank of Baroda, Canara Bank etc. We will continue to ride this trend until the primary trend remains up. Until then, we have to wait for how it performs this month.
The Nifty CPSE index is on the verge of a multi-year base breakout. The level at 2,768 has acted as key resistance. With the highest-ever monthly close above the area of overhead supply, it would be critical to watch price action throughout this month. CPSE index above the 2017 high will change the long history of inaction in Public sector stocks.
These were some of the charts that stood out with respect to the important levels we're tracking. We'll have many many more to discuss in our Monthly Strategy Conference Call on November 8th, at 7:00 pm. Join us to get a complete analysis of where the market stands today.
Share your thoughts with us and please let us know if you have any questions.
Allstarcharts Team