Two weeks back we had noticed IT putting its head again from underground and shared some actionable ideas. As the market progresses, we're noticing new names joining this list and thought it would be nice to have a follow-up post for the same.
Let's see what these stocks are indicating for the weeks and months ahead.
HCL Tech has now joined the other stocks in this sector as it attempts to move past its overhead supply zone of 1,024. Retreating from the same level twice in the recent past, we might see a follow-through this time around as the tailwinds favouring IT could favour this particular stock as well. The indicator is attempting to move back into the strong zone.
We are bullish above the level of 1,024 with a target near 1,425.
This week we're looking at a long setup in the Metal sector. Several stocks in this sector are performing well with our Outperformers scan throwing up another popular name last week.
We retired our "Five Bull Market Barometers" in mid-July 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.
Early in February, we had published a post discussing the Adani Group and its targets as well as risk management levels.
Seeing as this particular solar system is completing rotations and revolutions rather quickly, we thought it would be a good idea to revisit these stocks and track the updated levels for the weeks and months ahead.
Our equally weighted custom Adani Group Index has shown no sign of slowing down. The bullish trend is strongly in place and seems well on its way to the next higher level.
Click on chart to enlarge view.
Now let’s take a look at individual stocks and where they stand at present.
We published a post talking about how Chemicals were outperforming in the current market scenario. Another such group of stocks that have been performing well, is Cements. We published a post dedicated to Cement in December 2020, but it seems like the move has only started! More names are getting added to the 'strong' column so we thought we could revisit this sector again.
Are there any other stocks that have undergone any structural changes? Let's find out.
ACC has been an underperformer in this sector for quite some time now where we've cautiously put this name on the 'watch list'. It seems like the wait might just be over!
The price has finally broken out above the all-time high near 1,870 and looks ready for another leg of the rally. This is a four-year base breakout as the indicator continues to hovers around bullish momentum territory.
We are bullish above the risk management level of 1,870 with a target near 2,470.
The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.
The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.
The market has been moving sideways for two months now. But that does not mean that every sector will reflect the same move.
As the story of a market cycle unfolds, various sectors assume importance just like different characters in a play. Currently, the Chemicals segment is in the spotlight so let's see what its constituents are up to!
The Chemicals segment has been showing strength over the past few days with some interesting setups lined up. We included one such setup in our Trade of the Weekpost.
First up, we have Pidilite Industries which is now moving back into positive territory as it inches towards its overhead resistance at 1,800. The price has consolidated in the range of 1700-1820 and looks ready for a breakout as the indicator attempts to move higher. With the overall sector in focus, Pidilite could be dolling up to participate in the next leg of the rally.
We are bullish above the risk management level of 1,820 with a target near 2,030.
This week we're looking at a long setup in the Chemical sector. Certain stocks from this sector are grabbing our attention and we're looking at one of those!
We retired our "Five Bull Market Barometers" in mid-July 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.
The Indian Rupee has been strengthening against its counterparts and that has been an interesting change in trend from what we were seeing in early February.
With that in mind. let's take a look at some important levels to track as this trend continues to play out.
Markets across the globe have been taking a breather as the momentum cools off. Taking a closer look back home, the indices have been largely choppy and have consolidated over the past two months.
Is this merely a consolidation? Or are we looking at a minor correction ahead? Let's take a look at what the charts have to say.
In our Three Charts for the Week post, we talked about the resistance Nifty had been facing at 15,400 and also highlighted the crucial support at 14,460. We noticed a divergence in Nifty in January and that has continued to play out as the rally progressed. Within the current setup, the price hasn't been able to move past the 15,400 mark, in addition to now challenging the support level of 14,460.
How often have we heard that sector rotation is the lifeblood of a bull market? Too often! And there's a reason why it's necessary to repeat this statement. At different stages of a cycle, varied variables are at play. This means that every sector will not move in a uniform manner.
Over the past three months, IT has been consolidating as other sectors took the lead. With sector rotation at play, it seems like IT is back in the mix.
Let's take a look at what IT is doing relative to Nifty 100. After breaking out of an almost 12-year base, Nifty IT has been holding on to the high levels displaying inherent strength. Bouncing off its support the ratio chart favours a positive move in this index going forward.
