While updating our Members-Only Chartbooks today we came across two major breakouts that need to be pointed out as they play key roles in the Infrastructure and Public Sector Bank Sectors.

Let's take a look.

In this post, we're going to outline the most significant charts/updates since April's post.

Elections, as with other major world events, introduce a lot of new information that market participants need to digest. This often causes increased volatility as expectations are adjusted and buyers and sellers battle to establish a trend.

So far this week we've seen an expansion in the intraday trading ranges, but not much resolution in terms of overall trend direction.

Here's what we're keeping an eye on.

We've spoken about the lack of trend in the Major Indexes for a while now, but another theme that's becoming more and more pervasive is the weakness in Tech stocks.

Let's see how we're going to approach it.

Monday was our Members-Only Conference Call for both India and the US (see JC's video here) and the most overwhelming theme was that Equities are not trending, so what does that mean for us as market participants?

Twice a year the Nifty Indexes are reconstituted on March 31 and September 30, replacing stocks that don't fit the criteria with those that do. This past weekend we adjusted our chartbooks to reflect the changes that occurred at the end of the first quarter, so I wanted to write a quick post detailing some of the changes.

When trading against the primary trend, there are a few things we look for to define our risk and raise our probability of success.

We outlined them in a post a while back, but they essentially boil down to the following:

1. Our downside price target has been met.
2. Prices undercut that price target and quickly reversed.
3. Momentum diverged positively as prices made a new low.
4. Prices are very extended from their mean (200-day moving average).
5. Quick follow-through confirmed the supply/demand imbalance.
6. Short interest in the stock (not required, but amplifies move).

We are now seeing a few potential opportunities given that stocks have been hit, some harder than others, over the last few weeks.

The Pharma Sector had been improving from a structural perspective, but recent action and breadth may be suggesting the space is falling ill again.

Let's examine the evidence.

Last month price finally confirmed many of the divergences we were seeing under the surface and stocks began to correct...yet the Nifty 50 is sitting just shy of its all-time high.

What gives?

Yesterday we got new Monthly Candlesticks, so this post will outline a few of the major changes since last month.

Excuse my play on words in the title, but I wanted to make the point that at 13% of the Nifty 500, the Fast Moving Consumer Goods Index is a big part of the bull case for Indian stocks.

We've talked about weak participation in this sector and since then it's deteriorated further as opposed to getting better.