[Premium] Three Charts For The Week Ahead
Let's move into this week's topics.
1. The first chart is of the Nifty Small-Cap 100 Index, which remains stuck below resistance at 5,910 after its initial failed breakout. Also, it's worth noting that the Nifty 50 made a new marginal high last week and then failed, while the Mid and Small-Cap Indexes made lower highs.
From a risk appetite perspective, we don't want to be aggressively long stocks in the near-term until prices are above 5,910. As long as we're below that, the risk is to the downside towards 5,050.
Click on chart to enlarge view.
2. The second chart we want to look at is Reliance, which is threatening to break down after meeting our upside objective near 2,375 about a month ago. Prices breaking below 2,175 would likely signal weakness in the broader market and potential downside for Reliance to 1,600.
3. The third chart we want to look at is Zee Entertainment and the Nifty Media Index. Both failed at resistance and saw downside follow-through last week. We're watching closely to see if sellers become aggressive again this week or if prices can stabilize and correct through time rather than price.
In our view, these charts will help set the tone for this week and provide us information on how we should approach the market in the coming weeks.
Make sure to check out our other weekly post, "Trade Of The Week." And if you haven't read our Q3 Playbook, check out part 1 and part 2 for all of our views on the market.
Thanks for reading and please let us know if you have any questions.
Allstarcharts Team