Last week we wrote a post for our US subscribers to highlight several "big bases" that we are watching for potential breakouts.
The principles surrounding why we like "big bases" can be applied to Indian stocks as well, so we wanted to write a quick post outlining our logic and providing examples that may become actionable in the near future.
There's a lot going on in the world right now, and India specifically, but one positive to come out of all this mess is we may be seeing a more clear trend develop in USD/INR.
Tuesday's Mystery Chart received a lot of responses, with most of you were erring on the long side.
Now, let's look at the chart and its related theme.
Here's SBI Life Insurance Company Ltd. attempting to break out above its post-IPO base while the more traditional "banking stocks" are being hit hard. Sure the price action is a bit choppy, but it's not going down like many other stocks in the sector and market.
Click on chart to enlarge view.
The reason this chart stood out to us is that the relative strength is obvious and suggests that these stocks will lead to the upside once the market gains its footing. As long as prices are above their recent lows of 732, the bias is to the upside towards 952.
Selling continues and now many broader market and sector indices are at or below support, so in this post, we'll look at some of those charts and assess the damage that's been done.
While updating this Chartbooks this weekend there were a few stocks that we've spoken about in the past, but I wanted to follow up on given they're near actionable levels.
Several shorts, a few longs, and one to keep on your radar.
