AllstarchartsINDIA

AllstarchartsINDIA

Bharti Airtel is in the news this week as its parent company Bharti Telecom decides to sell $1bn in stock to retire debt. Here’s the relative chart of Bharti Airtel vs the Nifty 50. This outperformance shows accumulation by institutions and suggests that any meaningful weakness will likely be met with buyers. Both the absolute and relative trends in Bharti Airtel...

AllstarchartsINDIA

Bharti Airtel is in the news this week as its parent company Bharti Telecom decides to sell $1bn in stock to retire debt. Here’s Bharti Airtel’s weekly chart showing its 12-year base breakout from earlier this month. Momentum has waned a bit on the upside, but overall this structural breakout remains intact as long as prices are above 490. Both the absolute and...

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Vedanta Ltd. has begun the process of a voluntary delisting of its shares from the public exchange, with the promoter group planning to buy out the remaining ~49% of non-promoter shares it doesn’t currently own. We spoke about Vedanta Ltd. in our Chart Summit India presentation last month as a stock setup we liked on the long side, so given this news, we wanted to...

AllstarchartsINDIA

Vedanta Ltd. has begun the process of a voluntary delisting of its shares from the public exchange, with the promoter group planning to buy out the remaining ~49% of non-promoter shares it doesn’t currently own. We spoke about Vedanta Ltd. in our Chart Summit India presentation last month as a stock setup we liked on the long side, so given this news, we wanted to...

AllstarchartsINDIA

The "Island Reversal" that confirmed in the Nifty 50 and other major indices on May 4th continues to suggest near-term caution, particularly if Nifty can't reclaim the 38.2% retracement of its 2020 decline. In our blog post linked below, we take a look at several charts that suggest further weakness in Equities around the globe could be ahead. We're watching...

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In addition to seeing the weakest sectors in India breaking to new lows, we’re witnessing some of its leading stocks run out of steam over the short-term. Here’s PI Industries failing to get above resistance near 1,585 and slowly beginning to roll over again. Notice momentum failed to reach overbought territory as well. And there are plenty of other leading stocks...

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The weight of the evidence remains mixed and suggests that there will be winners on the long side, winners on the short side, and a lot of stocks in the middle that aren’t going anywhere. Nifty Commodities remain below the 38.2% Fibonacci Retracement of its 2020 decline at 2,635. With momentum in a bearish range and stuck below this level, then it makes sense to...

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HDFC Bank is stuck below former support near 955, which is also the 38.2% Fibonacci Retracement of its recent decline. As long as prices are below 955, then there's a risk that the stock retests its lows set in March near 740. As the largest component of the market's largest sector, this will likely continue to weigh on Indian Equities in general. With momentum...

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The weight of the evidence remains mixed and suggests that there will be winners on the long side, winners on the short side, and a lot of stocks in the middle that aren’t going anywhere. Here’s NMDC Ltd. breaking back below former support/resistance near 78 and starting to move lower again. With momentum in a bearish range and absolute and relative price action...

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We're outlining "Five Bull Market Barometers" that we're using to help answer the question of whether we're in a new bull market. Next up is Copper, which recently completed a multi-year top by breaking through support near 405-410. After a sharp counter-trend rally, prices are now retesting this major resistance level. Copper and Emerging Market stocks have a...

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We're outlining "Five Bull Market Barometers" that we're using to help answer the question of whether we're in a new bull market. One of them is the Nifty 100/Nifty Small-Cap 100. Since most stocks in India peaked back in January 2018, this ratio has been steadily rising…showing real risk aversion among market participants, not risk appetite. Institutions that...

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Nifty Smallcap 100 remains at risk, stuck below resistance near 4700 but well above support at 2700. Long-term 4700 is the level that matters. If we’re below that, then downside risk remains elevated.

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Nifty 50 holding above its 2015-16 highs near 8900. Ass long as prices are above that, it’s hard to be too bearish. It’s below that level where stocks are in trouble, for now sideways action continues.

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USD/INR made new all-time monthly closing highs in April but failed to follow through in May. As long as prices are above 75 then the long-term trend remains higher, but bulls want to see some upside acceleration occur soon or this breakout will be at risk of failing.

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In November the Nifty Pharma / Nifty 100 ratio met our downside objective as momentum diverged positively, sparking a massive 6-month period of outperformance from the Pharma sector. We've ridden this trend since it started, but prices are now back at the ratios 2014 lows and beginning to fail. What acted as support is now resistance...and following the massive...

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After a 55% rally off its March lows, the Nifty Pharma Index has confirmed a failed breakout by closing back below resistance at its early 2019 highs of 9,500. As long as prices are below that level then we'd expect some near-term weakness in this hot sector. There's a large level of support down below near 8,350, so as long as prices are above that level then any...

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Over the short-term stocks that have been hit the hardest, like Endurance Technologies Ltd., are continuing to mean revert to the upside. Money is rotating out of Nifty Pharma, Nifty Fast Moving Consumer Goods, and other areas that have led the recent rally and is now flowing into other areas like Nifty Financial Services that have yet to participate to the same...

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Over the short-term stocks that have been hit the hardest, like RBL Bank, are continuing to mean revert to the upside. Money is rotating out of Nifty Pharma, Nifty Fast Moving Consumer Goods, and other areas that have led the recent rally and is now flowing into other areas like Nifty Financial Services that have yet to participate to the same extent. In this...