[Premium] Three Charts For The Week Ahead

Last week we focused on Nifty PSU Bank, FMCG, Bank Nifty

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 Vanguard FTSE All World ex-US ETF. United States act as the primary driver of global equity risk. VEU presents the picture of global markets excluding the US so the investors can participate without the direct influence of the US. It also helps in analysing the period of relative underperformance/outperformance.
VEU attempting to move past resistance will be important from a global market standpoint. It has faced resistance at the critical level at $53. This level has acted as resistance multiple times over the years. The price above it would be the key risk-on for global markets.

Click on the chart to zoom in.

2. The second chart we're looking at is Dow Jones Industrial Average. DJIA is the price-weighted index of the top 30 US market stocks with a close correlation to the S&P 500. It recently had a failed breakout at its August highs, near 33,250. As we know, failed breakouts often lead to fast moves in the opposite direction, which in this case, is lower. Price below the August high set the near-term outlook lower for the bulls.

3. The third chart we're looking at is the Nifty Pharma Index. On an absolute basis, it faced resistance from 2015 highs, where risk peaked out earlier. Pharma made a new 52-week low relative to the Nifty 100 index. It indicates that it is the weakest sector to be in. A few individual stocks are moving higher along with the Nifty100, but most names in this sector are the laggers.

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, 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