So i’ve decided to restart the Weekly Market Update newsletter with few changes. So in this newsletter i’ll be updating about the broader market, Commodities like Gold & Oil, Sectors that i’m focusing on, My watchlist for Coming week and My favorite setups.
So let’s start -
BROADER MARKET -
So when we look at the broader market (I’m using Nifty 500 Index here), it showed some recovery and the price took out the previous swing high, changing the structure from LOWER HIGH - LOWER LOW to HIGHER HIGH, plus the Index is now above it’s 30 WEEK EMA.
But I’d a little bit cautious in the short term as the market has been rising constantly from past few weeks without a pullback. So I won’t rule out the possibility of a minor pullback. So keeping that view, have reduced the positions a bit and have booked some profit.
US MARKET -
NASDAQ COMPOSITE INDEX also showed some short term recovery but I won’t celebrate too soon. Why?
12580 still remains a very strong resistance as previously it was acting as a support plus the 30 W MA will also act as a resistance around that level on the way up.
And as in the case of S&P500, 4160 remains a strong resistance.
COMMODITIES -
GOLD is back at it’s Pre-Covid high. The same area which was acting as resistance before march 2020 crash is now acting as a strong support. So if anyone is bullish on gold, it’s a good area to buy or add more.
CRUDE is also cooling off (Good for India) and if it breaks 95$, then a fall towards 84$ is possible.
SECTORAL INDICES -
So AUTO & FMCG both remains the strongest sectors, the 1st one to cross their previous highs when the broader market & Midcaps & Smallcaps are down 20-30% from their All Time High levels
But our job is to find next winner right?
So in my view, NIFTY REALTY & NIFTY BANK are gonna be the next leaders. Why? Let me explain you with charts.
So nifty realty gave a descending channel breakout last week. And if you go through chart of the real estate companies, one thing you will found common is that, most of them have made a bottom and now coming up strongly. (My few top picks are from Realty Sector)
And now if you look at the chart of NIFTY BANK , one thing you can clearly see that it’s performing better than Nifty 500 & Nifty 50. Gave a very strong weekly close above 30 W MA but i’m not ruling out the possibility of a pullback in the short term.
Many bank stocks have recovered from their lows with ICICI acting as a clear leader.
MY WATCHLIST -
So what I do is, every weekend, I go through around 1100 charts listed on NSE, manually and select the ones that are showing good structure and place them in a separate watchlist. And here is my watchlist -
I guess the post is too long for the EMAIL, rest will be in part - 2
( Disclaimer - i’m not a SEBI registered analyst and any stock discussed here is not buy or sell recommendation)
Is there any link between realty index and hotel stocks doing good ?