• Investing
  • Stock
  • Economy
BigMoneyHall.com – Investing and Stock News
  • Editor’s Pick
  • Latest News
Stock

Week Ahead: Expect Markets To Trade With Positive Bias So Long As These Levels Are Defended; These Sectors To Do Well

by January 16, 2023
by January 16, 2023

In the previous weekly technical note, it was mentioned that the markets may continue to stay in a trading range until they trade below the crucial 18300 level which is one of the major resistance points on the chart. Over the past five days, NIFTY not only remained below this point but tested crucial support levels on the daily chart multiple times. The last trading day once again saw the index rebounding from lower levels. The trading range remained modest; the index oscillated in a 379 points range throughout the week. The benchmark index finally closed with a modest gain of 97.15 points (+0.54%) on a weekly basis.

The US Markets are having a long weekend; they will be a trading holiday on Monday on account of the observance of Martin Luther King Day. From a technical perspective, this week is the fourth time that NIFTY has taken support on the shorter 20-Week MA which is currently placed at 17883. This level coincides with the 100-DMA which is in very close vicinity at 17911. This makes the zone of 17850-17900 a very important support zone for the markets on a closing basis. So long as the index trade above this zone, there are greater possibilities of the markets avoiding any major breakdown on the charts. Only a close below this zone will invite incremental weakness in the markets.

Volatility dropped again; INDIAVIX came off by 3.76% to 14.46. The coming week will see a quiet start; the levels of 18280 and 18460 acting as major resistance points. The supports will come in at 17800 and 17680 levels.

The weekly RSI stands at 53.44; it remains neutral and does not show any divergence against the price. The weekly MACD is bearish and trades below its signal line.

The pattern analysis of the weekly chart shows that the Index has continued taking support on the shorter 20-Week MA for the fourth week in a row. This level, when read along with crucial supports on the daily chart makes the zone of 17850-17900 a crucial support zone for the NIFTY.

The coming week is likely to see some risk-on approach in the markets. The US Dollar Index has stayed particularly weak; there is some room for it to get a bit weaker from here as well. This is set to auger well with the Commodities and Metal stocks. These groups, along with other economy-facing sectors are likely to do well over the coming days. A dual approach is recommended for the coming week. While shorts may be avoided so long as the NIFTY is above 17800 on a closing basis all declines must be used to pick up good quality stocks in modest quantities. While continuing to keep overall exposure controlled, a cautiously positive approach is advised for the coming week.

Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed

The analysis of Relative Rotation Graphs (RRG) continues to show status-quo on the sectoral setup; no major changes are seen in the way the sectors were rotating in the week before this one and the previous week. We have PSU Banks, Metals, Commodities, Infrastructure, Banknifty, Financial Services, PSE, and Services Sector Indexes inside the leading quadrant. All these groups are set to relatively outperform the broader markets.

Among these, the Financial Services Sector appears to be paring some relative momentum; we may see some consolidation creeping in this space.

Nifty Midcap, FMCG, and Auto Indexes are inside the lagging quadrant. However, they are seen improving in their relative momentum. The Pharma, Consumption, Media, and Realty groups are also inside the lagging quadrant. They are likely to relatively underperform the NIFTY500 Index.

The Energy Sector Index is inside the improving quadrant along with the IT Index. We can fairly expect these groups to put up a resilient show over the coming week.

Important Note: RRG™ charts show the relative strength and momentum for a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

0 comment
0
FacebookTwitterPinterestEmail

previous post
7 Things I Wish I Knew When I Started Trading
next post
What Is An Implied Volatility Crush

Related Posts

What are the Equity Market’s Positive Signs?

January 31, 2023

January’s Performance: A Good Start for 2023?

January 31, 2023

Sector Spotlight: Sector Rotation Out of Defense

January 31, 2023

What are the Equity Market’s Warning Signs?

January 31, 2023

The Halftime Show: Sharing “Secret” Chaikin Lists

January 30, 2023

DP Trading Room: New Golden & Silver Cross...

January 30, 2023

Bears Are Waking Up to the Fact They’ve...

January 30, 2023

Some Classical Technical Developments Shaping Up As Volatile...

January 29, 2023

The SPY Knocks on the Door of Resistance

January 29, 2023

Ready, Set, COVER! Breakouts Are A Short Seller’s...

January 28, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent Posts

  • Vermont weighing legal protections for providers of abortion, trans procedures

    February 1, 2023
  • ‘Anti-religious bigotry’: Nebraska Dem’s amdt. would ban kids from vacation Bible schools, church youth groups

    February 1, 2023
  • Virginia bill would ban transgender athletes from women’s sports

    February 1, 2023
  • Pennsylvania Democrats endorse Philly appellate judge for state Supreme Court seat

    February 1, 2023
  • How a group of Democrats and Republicans could bypass McCarthy and lift the debt ceiling

    February 1, 2023
  • Maine Gov. Mills to give budget address on Valentine’s Day

    February 1, 2023

Editors’ Picks

  • 1

    New Mexico top prosecutor shifts focus to addressing child civil rights

    January 16, 2023
  • 2

    Noem blocks South Dakota business with certain companies owned or controlled by ‘evil foreign governments’

    January 20, 2023
  • 3

    Group backing Ron DeSantis to spend $3.3M to make him the Republican nominee over Donald Trump in 2024: report

    January 19, 2023
  • 4

    Democrat leadership leaves Adam Schiff hanging on call for intelligence assessment of Biden’s classified docs

    January 16, 2023
  • 5

    Indiana Rep. Jim Banks launches 2024 Senate run, highlights record as ‘conservative fighter’

    January 17, 2023
  • 6

    New York City Mayor Eric Adams demands ‘national czar’ for migrant surge, a role VP Kamala Harris already has

    January 18, 2023
  • 7

    Ticketmaster’s day in Congress met with bipartisan ‘bad blood’ and more Taylor Swift puns from senators

    January 26, 2023

Categories

  • Economy (13)
  • Editor's Pick (16)
  • Investing (13)
  • Latest News (409)
  • Stock (62)

Latest News

  • Tim Scott, Cory Booker still hoping for bipartisan police reform despite slim prospects

    January 31, 2023
  • What are the Equity Market’s Warning Signs?

    January 31, 2023
  • Utah bill looks to ban gender-affirming surgery for minors

    January 19, 2023

Investing News

  • Trump reacts after White House says no visitor logs exist at Biden Delaware home where classified docs found

    January 16, 2023
  • Are You Invested in Precious Metals Yet?

    January 26, 2023
  • Footage shows Texas border agents end high-speed chase as armed smuggler attempts to flee on foot

    January 17, 2023
  • About Us
  • Contacts
  • Email Whitelisting
  • Privacy Policy
  • Terms and Conditions

Disclaimer: BigMoneyHall.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 BigMoneyHall.com. All Rights Reserved.

BigMoneyHall.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
BigMoneyHall.com – Investing and Stock News
  • Editor’s Pick
  • Latest News
BigMoneyHall.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
BigMoneyHall.com – Investing and Stock News
  • Editor’s Pick
  • Latest News

Disclaimer: BigMoneyHall.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 BigMoneyHall.com. All Rights Reserved.

Read alsox

NVDA Hits Resistance: Can the Stock Go...

January 24, 2023

Two Highly Entertaining Stocks to Watch

January 24, 2023

Going, Going, Gone: End of Week Themes...

January 21, 2023