[Premium] Three Charts For The Week Ahead

Last week we focused on the Nifty Private Bank Index, Havells India, and HDFC Life Insurance.

Let's move into this week's topics.

1. The first chart we want to look at is the Shanghai Composite, which has been the one laggard in the Emerging Markets' space. Despite new highs in India, Taiwan, and South Korea, the Shanghai has failed to participate.

If markets are going to continue to rally in the near-term, laggards like this are going to have to pick up, so we'll be watching this closely as its ability (or inability) to break out will likely tell us a lot about risk appetite for Equities in general.

Click on chart to enlarge view.

2. The second chart we want to look at is Euro/Rupee, which is attempting to make new highs after breaking out successfully several weeks ago. Continued strength in the Euro and weakness in the US Dollar is a major tailwind for Emerging Market stocks and should be a continued tailwind for Equities in general over the intermediate/long-term.

3. The third chart we want to look at is the Nifty 100 / Nifty Mid-Cap 100, which made new correction lows last week. Rotation out of Large-Caps and into Mid and Small-Cap segments of the market continues and remains a positive for risk appetite and Equities over the intermediate/long-term.

In our view, these charts (as well as those we shared last week) will help set the tone for this week and provide us information on how we should approach the market in the coming weeks.

Also, make sure to 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