• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Week Ahead: RRG Indicates Sector Shifts; NIFTY Deals With These Crucial Levels
Stock

Week Ahead: RRG Indicates Sector Shifts; NIFTY Deals With These Crucial Levels

by April 26, 2025
by April 26, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Following a strong move the week before, the markets took on a more consolidatory look over the past five sessions. Following ranged moves, the Nifty closed the week on just a modestly positive note. From a technical standpoint, the Nifty tested a few important levels on both daily and weekly charts. However, the trading range narrowed. The Index oscillated in a 517.60-point range over the past week. The volatility surged again; the India VIX spiked 10.93% to 17.16. The headline index went on to close with a modest weekly gain of 187.70 points (+0.79%).

The coming week is shortened, with Thursday being a trading holiday due to Maharashtra Day. We could write about more than one thing that the markets could be worried about over the coming days. It could be the lowered growth forecasts by the IMF that include India and other economies; it could also be the heightened possibility of escalating geopolitical tensions between India and Pakistan. However, all that said, the markets are also at a crucial technical juncture. The Nifty has closed just at the 200-DMA placed at 24050. Besides this, Index has also defended the 50-week MA at 23925. This makes the 23,900-24,050 zone a crucial support area for the Nifty. The consolidation is imminent as the Nifty has rebounded over 11% from its April 07 lows, and minor corrective retracements cannot be ruled out. However, if 23900 is breached, the markets may see some extended retracements.

The weekly RSI is at 55.46; it stays neutral and does not show any divergence against the price. The weekly MACD is bullish and stays above its signal line. A candle resembling a Shooting Star has emerged, increasing the likelihood of consolidation. Importantly, any candle formation should not be traded in isolation and must be used in conjunction with the overall technical setup.

The pattern analysis shows that the Nifty has defended the 50-week MA placed at 23925. The Index has also tested a rising trendline resistance; it violated this trendline support on its way down, and now this is expected to act as resistance. Overall, the zone of 24050-23900 is a crucial support zone for Nifty. If the level of 23900 is violated, it can lead to incremental weakness.

Overall, the technical structure of the market suggests that it is time for one to focus more on protecting gains at higher levels. While there could be some reactions by the markets due to external factors, the underlying buoyancy stays intact. The only thing to be cautious about is the natural corrective retracements that the market may experience following the steep upward move that has taken place. Investors must keep fresh purchases should be kept in low-beta stocks that have strong relative strength. With sector rotation visible, a cautious outlook is advised for the day.

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 the Nifty PSU Bank Index has rolled inside the leading quadrant. The Consumption, Commodities, Financial Services, Infrastructure, Metal, and Nifty Bank Indices are also inside the leading quadrant. While the weakening of Relative Momentum is seen in the Metal and Financial Services Index, they are likely to outperform the broader markets relatively.

The Nifty Services Sector Index has rolled inside the weakening quadrant.

The Midcap 100 and the Realty Index are showing strong improvement in their Relative Momentum while staying inside the lagging quadrant. The IT and the Auto Index continue to languish inside the lagging quadrant.

The Media Index has rolled inside the Improving quadrant, indicating a likely beginning of its phase of relative outperformance. The Nifty PSE, Energy, and FMCG Indices are also 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
  • It’s Not About the Crypto, Part 2
  • BONDS & CASH – But Can We Find Better Income Alternatives?
  • A Nasdaq 100 Stock Showing Relative Strength in August
  • Surprise Negative Divergence on Nasdaq Advance-Decline Line
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Top Stock Areas After the Rally: What Smart Money Is Buying
next post
Zweig Breadth Thrust Dominates the Headlines – But What about an Exit Strategy?

You may also like

Will XRT (Retail) Sink or Soar? Here’s What the Charts...

August 16, 2024

The Biggest Mistake Traders Make!

January 18, 2024

Bank Earnings: JP Morgan vs. Goldman Sachs

July 11, 2023

It’s Not About the Crypto, Part 2

February 16, 2023

Small Caps Are Ready To Launch!

May 23, 2023

Nasdaq DROPS on Weak AMZN, TSLA & GOOGL Earnings!

February 8, 2025

The Ord Oracle August 15, 2023

August 16, 2023

Are The Markets Just Pulling Back, or Is It More?

June 24, 2023

The Hoax of Modern Finance – Part 2: Indicators, Terminology,...

December 14, 2023

Down-and-Out Stocks Entering New Uptrends – These 8 Traits Will...

June 10, 2023

Will XRT (Retail) Sink or Soar? Here’s What the Charts...

August 16, 2024

The Biggest Mistake Traders Make!

January 18, 2024

Bank Earnings: JP Morgan vs. Goldman Sachs

July 11, 2023

It’s Not About the Crypto, Part 2

February 16, 2023

Small Caps Are Ready To Launch!

May 23, 2023

Nasdaq DROPS on Weak AMZN, TSLA & GOOGL Earnings!

February 8, 2025

The Ord Oracle August 15, 2023

August 16, 2023

Are The Markets Just Pulling Back, or Is It More?

June 24, 2023

The Hoax of Modern Finance – Part 2: Indicators, Terminology,...

December 14, 2023

Down-and-Out Stocks Entering New Uptrends – These 8 Traits Will...

June 10, 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

    • Nike pushes back Skims launch with Kim Kardashian due to production delays

      June 19, 2025
    • The Fed Is Getting It Wrong AGAIN As They Hold Rates Steady

      June 19, 2025
    • DOJ seizes record $225 million in crypto tied to global ‘pig butchering’ scams

      June 19, 2025
    • Feeling Unsure About the Stock Market’s Next Move? These Charts Can Help

      June 18, 2025
    • Amazon expects to cut corporate jobs as it relies more on AI

      June 18, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,598 views
    • 2

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

      June 27, 2024 2,871 views
    • 3

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

      August 9, 2024 2,574 views
    • 4

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

      July 10, 2024 2,537 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,412 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,140)
    • Investing (538)
    • Stock (2,620)

    Popular Posts

    • 1

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

      June 25, 2024
    • 2

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

      June 27, 2024
    • 3

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

      August 9, 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

    • Nike pushes back Skims launch with Kim Kardashian due to...

      June 19, 2025
    • The Fed Is Getting It Wrong AGAIN As They Hold...

      June 19, 2025
    • DOJ seizes record $225 million in crypto tied to global...

      June 19, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,140)
    • Investing (538)
    • Stock (2,620)

    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

    The Science and Art of Stock...

    January 3, 2024

    Walmart Stood Strong When The Market...

    February 13, 2024

    Week Ahead: Nifty Creates Resistance In...

    June 30, 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