Nifty Industrial Manufacturing has been performing well and has caught our attention over the past two weeks. We selected Cummins India and Siemens Ltd. in our Trade of the Week before. But it seems like the other constituents are catching up as well.
We thought we could look at actionable ideas in this sector as several stocks are breaking out of big bases.
We created an Equally weighted custom index of the Industrial Manufacturing sector and this line chart reflects exactly what we're seeing in the individual constituents. A breakout in this index is suggesting further upside as an increasing number of stocks participate in the rally going forward.
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 universe comprises several solar systems- big and small. Similarly, the market comprises of several conglomerates- big and small. One such conglomerate that we'd like to look at today is the Adani Group.
It is fit to call the Adani Group a solar system since there have been times in the past when these stocks have rallied despite a broader market correction. So where are these stocks headed and what is our view of the constituents of this group going forward?
Let's take a look at the charts.
We created an equally weighted custom index of the Adani Group constituents. It takes one cursory glance at this chart to see that this group has been on a tear since the dip in March 2020. With only minor corrections halting these stocks from time to time, the returns generated by this group have been handsome indeed.
With the ensuing move in the Auto stocks, we thought of doing a deep dive into this sector to see if we could find some actionable setups.
The Auto sector has closed comfortably above the resistance level of 10,400 effectively absorbing overhead supply at these levels. In the weeks and months ahead, this sector could make a dash towards the level of 12,110. The strong bullish momentum regime indicated by RSI alludes to the same view.
Click on chart to enlarge view.
Relatively speaking, Nifty Auto has broken out of its resistance zone and is ready for the next leg of the rally.
This week we're looking at two long setups. The sectors we're looking at are Private Banks and Infrastructure.
We elaborated in the Three Charts of the Week post about the strength we're seeing in Banks and Infrastructure sectors and identified a couple of names that could do well going forward.
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.
There is a big difference between those who follow the market on a daily basis and those who take a quick glance at it once in a while. One category tracks moves for short term trades and the other looks out for long term investments.
What catches the attention of both these categories simultaneously though?
When the top two gainers of the day in Nifty50 go by the ticker names of SBIN and ITC.
This is not a frequent phenomenon and hence attracts more eyeballs upon occurrence.
Read on to know more.
SBI and ITC are like the elephants of the jungle - they move when they have to but stay under the radar for the most part. These are evergreen names that have the good fortune of being held in high standards in the eyes of the market, regardless of market conditions.
Ask around for long term investment tips, and all analysts big and small manage to throw these two names in the mix pretty often.
But why are we focusing on these names?
Has anything changed? Maybe.
Are we observing something new in the price action? Maybe.
This week we're looking at one long setup and one short setup. The sectors we're focusing on this time are Manufacturing and Media.
As long as the short-term weakness in the market is in place, we will look for selling ideas that fit our risk management and time frame prerequisites.
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.
