[Premium] Three Charts For The Week Ahead

Last week we focused on S&P500 Nifty 50, USDINR, Reliance Industries

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 S&P BSE Capital Goods Index. The sector has been demonstrating robust bullish momentum, outperforming the broader large-cap stocks represented by the Nifty 100.

This is evident from the index's ability to hold its price above the October 2021 peak, despite the broader market experiencing a decline. Our investment strategy involves selecting stocks within the sector with a greater number of uptrends. The ratio of the S&P BSE Capital Goods Index to the Nifty 100 has been steadily rising since 2020, indicating that the capital goods sector has been displaying sectoral leadership across various market environments.

Click on the chart to zoom in.

2. The second chart we're looking at is All India Market Capitalisation, which covers about 5,200+ BSE listed companies, and the market capitalisation of the Top 10 companies in the top pane and Nifty 500 in the bottom window.
The data on Market Capitalisation indicates that the recent surge in stocks can be attributed to the performance of the top 10 market cap stocks, while the overall All India Market Capitalisation has been showing a divergence from its October 2022 lows. It's critical for the Nifty 500 to stay above the significant support level of 14,600 to maintain its uptrend price structure.
A similar pattern is visible in the Top 10 Nifty 50 stocks index. It is testing the October 2021 highs again. This level will be crucial to watch for future price action.

3. The third chart we're looking at is CRB Index. The CRB Index measures the average price movements of 19 commodities that are widely traded in global markets. These commodities are grouped into four categories based on their use and characteristics: Energy: 39%, Agriculture: 41%, Precious Metals: 7%, Base/Industrial Metals: 13%. The index is rebalanced every month to reflect the changes in the market.
This index has been trading above the important 61.8% Fibonacci retracement level since July 2022. This level represents a key support zone that could determine the long-term trend of the index. If this level is broken, then it could trigger a bearish reversal in the index and affect the prices of all related commodities negatively.

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