• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Week Ahead: NIFTY Stares At Scaling New Highs; These Sectors May Relatively Outperform
Stock

Week Ahead: NIFTY Stares At Scaling New Highs; These Sectors May Relatively Outperform

by December 3, 2023
by December 3, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Following a strong consolidation in the week before this one, the markets finally staged a decisive rally over the past four sessions of the truncated week. The benchmark index NIFTY50 surged in all four sessions; it went on to move past the previous lifetime high of 20222.45 and managed to end at a fresh all-time high level. Amid high volatility, the trading range also got wider; the NIFTY moved in a range of 491.55 points through the week. While managing to maintain the gains, the headline index managed to close near its high point with net weekly gains of 473.20 points (+2.39%).

While the markets rose, so did the volatility. The volatility, as represented by INDIAVIX, surged 9.29% to 12.38 on a weekly basis. From a technical standpoint, the Index remains firmly on a rising trajectory. If it continues to advance within its defined and laid path, it may go on to test the upper edge of the rising channel which translates into the levels of 20500—20650 zone. The spikes in the volatility may turn the market choppy; however, there are greater of the breakout getting extended and the Index testing the upper edge of the rising channel. After that, some consolidation cannot be ruled out.

Monday is expected to see a positive and strong start to the week; the levels of 20400 and 20580 are likely to act as resistance. The supports come in at 20080 and 19900 levels.

The weekly RSI is 65.90; it has marked a fresh 14-period high which is bullish. It stays neutral and does not show any divergence against the price. The weekly MACD is bearish and below its signal line; however, it looks on the verge of a positive crossover.

The NIFTY has closed above the upper Bollinger band. Even if it temporarily pulls itself back inside the band, it has laid a strong foundation for a sustainable breakout taking place. This setup has further increased the possibilities of the NIFTY testing the upper edge of the rising channel as mentioned above.

The pattern analysis of the weekly charts lays out a simple picture. The markets suffered a full throwback and this led to the NIFTY retesting the original breakout zone of 18900-18950. Very much on the expected lines, this zone acted as a potent support and the NIFTY not only rebounded but went on to form a fresh lifetime high. It is expected that the Index may go on and test the upper edge of the rising channel while attempting to test the 20500-20650 zone.

All and all, the larger setup looks evidently buoyant; there are greater possibility of the markets extending their breakout. However, over the coming week, we will also see some sector rotation taking place with money moving more into relatively defensive pockets like FMCG, Consumption, Pharma, etc., while the PSE space may continue doing well. It is strongly recommended to chase the right group of stocks while focusing on the stocks that are enjoying greater relative strength. An equal amount of emphasis should also be kept on protecting profits at higher levels. 

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.

Relative Rotation Graphs (RRG) show a similar kind of setup that was seen over the previous week. We have Nifty Realty, PSE, Infrastructure, Commodities, and Energy Indices inside the leading quadrant. These groups are expected to relatively outperform the broader markets.

The PSU Bank Index has rolled inside the weakening quadrant. This may see this space start to weaken its relative performance. Besides this, the Metal, Media, Pharma, IT, Auto, and Midcap indices are inside the weakening quadrant. Among these, the Metal, Auto, and Pharma groups are seen improving on their relative momentum.

Besides Nifty Bank, none of the Indices are inside the lagging quadrant. This space may struggle a bit so far as relative performance is concerned.

Nifty FMCG, Consumption, Services Sector, and Financial Services indices are placed inside the improving quadrant.

Important Note: RRG™ charts show the relative strength and momentum of 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

You Might Also Like
  • An Enticing Gold Mining Stock with a Strong SCTR Score
  • Time to Talk 6-7 Year Market Business Cycles
  • Will XRT (Retail) Sink or Soar? Here’s What the Charts Say
  • The Halftime Show: What’s the Fed’s Next Move? Here’s One Thing to Watch
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Pending home sales drop to a record low, even worse than during the financial crisis
next post
Bullish Rotation Fully Supports Further Gains Ahead

You may also like

GREAT News: This Bull Market is Expanding!

March 16, 2024

Your Questions, Answered! Price Gaps, Bull Flags, Inverse Patterns, and...

February 9, 2024

Why the S&P 500 Won’t Break 6000 (Yet)

October 25, 2024

Is the S&P 500 In Late Stage Accumulation?

February 4, 2023

Market Flashes Green Light Amid Broad-Based Rally

April 1, 2023

Which is More Likely — SPX Over 4600 or Below...

September 9, 2023

GNG TV: Finding Outperformance in Choppy Markets

February 16, 2023

Momentum Madness and Nasdaq 100 Stocks

December 15, 2023

Bank Earnings: JP Morgan vs. Goldman Sachs

July 11, 2023

The Zweig Breadth Thrust Triggers, but the Indicator is Missing...

November 11, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025
    • NBA star Russell Westbrook launches AI-enabled funeral planning startup

      May 7, 2025
    • Use This Multi-Timeframe MACD Signal for Precision Trades

      May 7, 2025
    • Judge allows lawsuit over Burger King’s Whopper ads to move forward

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,185 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,064)
    • Investing (538)
    • Stock (2,529)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against...

      May 7, 2025
    • NBA star Russell Westbrook launches AI-enabled funeral planning startup

      May 7, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,064)
    • Investing (538)
    • Stock (2,529)

    Disclaimer: RoundTableThoughts.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 © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Market Timing for a Rule-Based Strategy

    September 9, 2024

    Market Research and Analysis – Part...

    March 14, 2024

    Why This S&P Support Level is...

    October 8, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here