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.
In any given market there is never a time when all constituents move up together and vice versa. There is always an internal substitution at play. It is this game of musical chairs that helps us identify the sectors/sections that are exhibiting outperformance.
Once we are aware of the outperforming nature of certain ticker symbols, it becomes easier to select our avenues of investment.
Keeping that in mind, we are here to discuss two representatives from the commodity universe that are displaying strength.
This week we’re looking at a long setup in the Energy sector. It's a big name and there has been a breakout in the making for quite some time now. You've probably guessed it by now.
Let's take a look at the trade idea this time around.
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.
This week, Nifty Financial Services broke out to claim an all-time high after forming a six-month base. This sector has been taking a breather for some time now, but we are finally able to see signs of improvement.
Across the world, when strong market rallies come through, they come in unison with Financials. So if this current rally has to continue, we need the support of this sector. Are we going to get that though? Let's see what the charts are saying.
Here is Nifty Financial Services on a monthly timeframe. We do see a resolution of the trend. And prior to that, did you notice something interesting? Something we like to see in particular?
The price was consolidating above the Fibonacci level. That's a good sign. Always!
So now that we have this resolution in trend, the next level we're tracking is 23,350.
Keep in mind, this is a MONTHLY chart. Hence, think 23,350 in the months ahead, not weeks.
We get to see monthly candlesticks and refocus on the broader trend. We've said time and again how messy the current market is. When we look at the daily chart, we see a mess. When we look at a weekly chart, we see a mess. But when we look at monthly charts, a lot of things become clear.
It's almost as if you're trying to take a picture but the lens is unable to focus on the object. Monthly candlesticks correct just that. They help us focus on the object and present a clear picture of the trend.
We took a peek at some of the charts, and at a broader level, we thought these help understand some trends clearly.
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 IT Sector. IT is trading at all-time highs, and displaying the strength you'd like to see at an index as well as a stock level.
Let's take a look at the trade idea this time around.
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 FMCG sector had hit the snooze button and was in a nice slumber until recently. With the index making a new all-time high and stocks moving up above their resistances, this is a good time to take a look at FMCG.
We've been absolutely clear from the beginning that in a messy market environment, one has to be careful with regards to their investments.
What we also know, is that FMCG is a defensive sector and tends to lead the market when the sentiment isn't in the most positive territory.
So let's take a look at the stocks which are making the cut in the current market scenario.
How about being clear about our levels in the sector first?
Here's the sector chart that we're tracking at the moment. On the weekly timeframe, we're observing an overhead target above 39,600. This is the 161.8% Fibonacci extension of the October 2018 highs to December 2020 lows move.
What's left to see is if this trend continues along - above its immediate resistance - with the strong momentum that we're witnessing at present.
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.