This week we're looking at a long setup in the Metal sector. There are a handful of sectors that are outperforming the market as Nifty 50 continues to move sideways, and Metal has been a consistent name there.
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.
One of the most anticipated moves that market participants have been waiting for, is a rally in the Commodities space. We had seen some signs of this in December '20-January '21, but those moves didn't sustain. On the contrary, the base metals moved below their resistances and consolidated for two months.
Aluminum was the lone star in this group that continued to power through, despite the overall weakness that was prevalent in this sector.
This was a major reason why we continued to hold out for a rally in the base metals- Relative Strength. Aluminum was displaying relative strength against the rest of the metals. Had it been a scenario of overall weakness, Aluminum would be moving south as well.
We've noticed a pick-up in activity in the same names that were correcting/consolidating and thought this is as good a time as ever, for an update!
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.
As we progress into Q1 of Fiscal Year 2021-2022, this playbook outlines our thoughts on every asset class and our plan to profit.
This playbook will cover our macro view, touching on Equities, Commodities, Currencies, and Rates, as well as outline our views on the major nifty indices and the sector/thematic indices.
We also cover individual stocks we want to be buying to take advantage of the themes discussed in the playbook.
This week we're looking at a long setup in the Metal sector. There are a handful of sectors that are outperforming the market as Nifty 50 continues to move sideways, and Metal has been a consistent name there.
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.
Over the past month, we've seen agricultural commodities catch a bid as they break out of overhead supply zones and long-term consolidations.
We're tracking some commodities that have been witnessing a sharp move and demand to be noticed. So let's dive right in!
Mustard has been on our radar for some time and a fierce move has come through over the last ten days. The price has absorbed all overhead supply and is zooming away as we speak. The price has been in a sideways trading range for more than seven months and is now on the move. The indicator is in bullish momentum territory, looking good for a move towards 7,900.
We are bullish above the level of 6,200 with a target near 7,900.
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.
We've spoken about how Chemicals have been performing well for over two weeks. In a post we published in March-end, we highlighted some actionable ideas that were looking good from a risk-reward perspective.
Turns out, this segment has been continuing to display strength and we're seeing some more stocks joining the bullish reaction in this space.
You can access our earlier post here and check out all the ideas we've been tracking.
Let's take a look at Navin Fluorine. The price has moved past its resistance at 2,700 and is headed towards its next target of 4,010. With the indicator placed in bullish momentum and the sector performing well as a whole, we can expect a good move in this particular stock going forward. A strong name in this sector, Navin fluorine has broken out after a consolidation of almost five months.
We are bullish above the level of 2,700 with a target near 4,010
This week we're looking at a long setup in the Consumer Goods sector. We covered this specific trade idea in January and post the achievement of the target, it seems like a good time to update the levels.
