[Premium] Three Charts For The Week Ahead

JC Parets
March 3, 2023

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 SBSE Capital Goods, India Marketcap, CRB Index.

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 India 10 year bond yield. The yield has been continuously rising since the July 2020 low. The growth stagnated in June 2022 since the yield has in a range. We're tracking the level of 7.5%.
So what does the market look like if the IN 10-year yield is trending above 7.5%? Bonds are most likely catching lower. Growths stocks are experiencing renewed selling pressure. Higher rates will only exacerbate these trends – trends that remain in place from last year. Whether Indian yields continue to rise will have broad market impacts that no investor can afford to ignore.

Click on the chart to zoom in.

2. The Nifty CPSE index is the second chart we are examining, and it has made a remarkable new all-time high while maintaining a robust position above the 2018 high. Moreover, CPSE has been significantly outperforming the market concerning the Nifty 100 index. The market segment has demonstrated a positive performance, which is evident from the big multi-year base breakout, after years of underperformance. This breakout highlights the strength and potential for further growth in this market segment, making it an area to watch closely.

3. The third chart we're looking at is Nifty Realty Index. For the past four months, Nifty Realty has been experiencing a drawdown due to resistance encountered at the 161.8% Fibonacci extension level. The index has recently tested a critical high from 2018, and whether it can maintain this level will be vital for the long-term trend in realty stocks. Therefore, it is essential to monitor the sustainability of Nifty Realty above this level going forward.

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

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