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.
This week we're looking at a long setup in the IT sector. Yes, this sector might just be back into rotation! We're also taking a look at an updated target in the Industrial Manufacturing sector.
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 several conglomerates- big and small. We're back with another such conglomerate that we'd like to look at today- Bajaj Group.
One of the oldest and most reputable conglomerates of India, the Bajaj Group has been instrumental in generating great returns for investors across the board over the years.
Let's take a look at what the charts have to say.
We created an equally weighted custom index of the Bajaj Group constituents. A big base breakout can be seen here as is the case with several charts in the market. The Bajaj Group seems to have moved out of a four-year base and looks good for another leg of the rally.
Click on chart to enlarge view.
Now let’s take a look at individual stocks and where they stand at present.
Bond Yields and US Dollar have been in the spotlight over the last few days. But in the meantime, let's not forget to check on our shiny friends, that are not in their most shiny phases.
What are the levels to watch out for on Silver and Gold? Let's have a look.
Silver has been the stronger one out of the two names and we've seen more resilience from Silver over the past few months. While both the metals haven't been at their shiny best off late, an outperformance in Silver bodes well for precious metals in the weeks and months ahead. It is this outperformance that prevents us from shorting Gold and being selective about the levels we observe.
We are in the midst of a bull-run and the events over the last ten days or so have sprung up some doubts over the current move with regards to the repercussions of the rise in bond yield and the US dollar.
We included the US Dollar(DXY) chart in the Three Charts for the Week ahead post since DXY moved past its resistance in the week gone by. Let's take a look at how this had panned out in the past and what are the signals that we can identify in the present.
The chart below tracks DXY and Nifty 50 over the past 20 years. Note that we are looking at the subsequent move in Nifty 50, following the bottoming out of DXY. The dashed lines mark the reversals in DXY, which is what we're tracking here. Of the seven instances where we've seen the bottoming out of DXY, Nifty 50 has continued to rally on four such occasions.
On three occasions the negative correlation plays out as can be seen in the years 2000, 2008 & 2015.
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.
In our latest post, we highlighted the outperformance of Small-caps over large caps and shared a few ideas that we thought could perform well going forward.
Here is part 2 of the Small-cap actionable ideas. Let's see take a look at the names that have made the cut!
Nifty Small-cap 100 has been moving past crucial resistances. As can be seen from the chart below, we're tracking 7,850 as the risk management level with 9,650 acting as the next target.
In no market can prices rally without minor corrections, so as long as this index is trading above 7,850, our bullish view remains intact.
Small-Caps are now the flavour of the season, or at least of the current market setup. With these stocks outperforming the broader market, we took a look at some stocks that could be actionable trades with good risk-reward ratios.
We've broken down this post into two parts to do justice to the number of ideas we're observing right now.
As the Small caps continue to outperform the market, the constituents belonging to this segment are expected to generate greater returns than the large-caps.
For now, it looks like this index is moving about in a market of its own. The next target that we're tracking is 9,650 and the risk management level is 7,850.
Click on chart to enlarge view.
Now let’s take a look at some actionable ideas at current levels that look attractive on the long side for the next few weeks and months.