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.
We retired our "Five Bull Market Barometers" in mid-July last year 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 market has been in a corrective mode for a little over a month. While this correction has been gaining some momentum, we took a look at the breadth internals of the market at this stage to dig a little deeper.
One important factor when the market was making new highs, was a lack of breadth expansion.
Now the important factor when the market is making lows is breadth expansion.
For the Indian market participants, the currency section has been extremely range-bound. And it's been that way for a while now! Every time we talk about it, there's nothing new to say.
We debuted a new scan recently which goes by the name- All Star Momentum.
All Star Momentum is a brand new scan that pinpoints the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to generate great returns.
While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the names that are the strongest performers in our universe and those that are primed for an explosive move.
Just like The Outperformers scan, this is a list of stocks belonging to the sectors that display relative strength in the market at any given point in time. Since sector rotation is the lifeblood of a bull market, we will be ahead of the curve before the gears keep shifting.
This week we’re looking at a long setup in the Consumption sector space. Seeing as IT and Consumption were the sectors that were displaying most strength, we decided to identify a stock from one of these two sectors.
We retired our "Five Bull Market Barometers" in mid-July last year 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.
Precious metals have been bearing the brunt of being the most underperforming asset class for over a year now. While we saw stocks and commodities rally, precious metals were moving sideways or undergoing correction. And this was regardless of where the US Dollar was headed!
But there's a movement coming through in the precious metals, which is important to observe. We are here to do just that.
Traditionally speaking, the Dollar and Gold have moved in the opposite direction. They have an inverse relationship so to speak, and that is depicted by the chart below.
As can be seen in the image below, the US Dollar and Gold have a strong negative correlation. This is evidenced by the correlation coefficient in the bottom pane. While there are times when they move in the same direction, the traditional relationship catches up pretty soon.
Notice how when the indicator contracts, the negative correlation reduces. But the inverse relationship persists beyond short bursts of positivity.
The Adani Group has been quite the wealth generator over time. But, in brief periods, they also tend to hit lower circuits. SO definitely a lively bunch, that's for sure!
It's been a while since we updated the trends in this space, so this is just that. An update in the levels that are to be followed.
So let's take a look, shall we?
First up, we like to see where the group as a whole is and what the trend is like there. Here's where the ASC custom Adani Group Index is as of today.
We saw the stocks making their highs in June this year, following which the group stocks went into a corrective mode (both time and price). What we can also see here is that the index hasn't crossed the high made in June and is still trading beneath it. We'd like to see this breakout here to be heavily bullish on this group again. Until then, it's a selective game.
This week we’re looking at a long setup in the Infrastructure sector space. Industrials and Infrastructure are showing strength and we're taking a look at one such stock today.
