[Premium] January 2019 Monthly Charts

The first chart I want to look at is the Nifty 50 overlayed with the Nifty Free Float Smallcap 100. The divergence between these market-cap segments continues to widen and that can't last over the long-term. I've written more about what we think of this here.

Click on chart to enlarge view.

The Nifty 500 remains rangebound within December's trading range. For now this remains a consolidation within an uptrend until there's a decisive break above the black line of resistance or below the blue line of support.

Financial Services continue to be one of the stronger areas of the market, lead by names like Axis Bank that are breaking out to new all-time highs. If prices are above 626 we need to be long, with an upside target near 980.

The Nifty Commodities Index continues to drift lower, sitting in no-man's land. The bias remains lower until we see more signs of a bottom...and new closing lows ain't that.

Reliance Industries is its largest component and appears to be resolving its consolidation higher. Prices remain in between our risk management level and target, but its bias clearly remains to the upside.

The Nifty IT Index is breaking out again, so we want to be long if prices are above 15,090 and taking profits near 18,660.

IT is being lead higher by names like Infosys which just made new all-time monthly closing highs. If prices are above 742 we can be long with an upside target near 1,175.

Consumer Goods continue to consolidate gains through time, but bulls want to see prices break out again here soon to help the broader indexes gain some traction.

The Nifty Auto Index remains in a downtrend, printing new closing lows this month. If prices are below 9,130, we want to be short with a target down near 6,835.

The Nifty Infrastructure Index has been trying to gain its footing (like the Commodities Index), however, its largest component Larsen & Toubro continues to fail at all-time highs. Until this breaks out, the sector is likely to struggle.

The Nifty Metal Index is finding some support after its 5th down month. If prices break 2,830, the next major level is 2,175.

The Nifty Media Index looks to be settling into a wide range between 2,500 and 1,850 after meeting our downside target. A neutral approach is probably best until we get more data.

The decline was driven by Zee Entertainment which crashed 38% and ended up closing down a mere 20%. Again, a wide range from 510 to 355 has developed, so a neutral approach is probably best for now.

Copper and the other Base Metals are finding their footing again, but remain largely rangebound.

Precious Metals on the other hand are breaking out! I wrote about it more here, but as long as Gold prices are above 32,450 we want to be long this structural breakout with a target near 37,425.

Same goes for Silver. If prices are above 40,000, we want to be long with a target up near 48,315.

Last but not least is the cleanest of the currency pairs, USD/INR which successfully retested the breakout area near 69. As long as prices are above that, this uptrend remains intact and our target is up near 80.

Those are the major changes I'm seeing structurally. Overall, stocks from the major index level remain mixed, but we continue to see opportunities in individual sectors and names, as well as Commodities and Currencies.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team