Looks ripe for a significant correction on weekly charts.
HDFCBANK being the biggest contributor of the BANKNIFTY, the index should follow if this pans out.
With RBI policy meet this week and impending Gujarat election, it won't take much for hell to break lose.
I think it's very good time take profits off the table on bank stocks.
DIVISLAB has been in a long downtrend followed by a lengthy consolidation.
It has just broken above the range and looks good for follow through.
The logical first target is 710 and eventually, if the rally sustains, it should fill the gap at 760
MARUTI has been in sustained uptrend and any consolidation has been a great buying opportunity.
It has just finished a consolidation phase and looks set for another leg up.
The auto sector in general has witnessed some consolidation after a very strong trend.
APOLLOTYRE also looking very good for short term but MARUTI has lower volatility
My earlier message about this scrip is void. It was only till the expiry which was today.
This sector has seen too much of negativity in the short run.
Technically, the price has broken the downward pattern.
It has to test the high to contemplate a run downwards.
86 is the short term target and 91 for medium term **if the short term goes well**.
So, the time has caught up with irrational exuberance on banking sector in India.
The ridiculous rally banknifty saw over last few months lacked any fundamental push as such.
Now it all seems to be unwinding. And this is going to be good!
In this chart we see State bank of India has broken the steep weekly channel quite significantly.
260 at least would be a...
Multiple red flags appearing on the horizon.
1. VIX has taken off while SPX is still pretty much range bound. It means investors are increasingly getting jittery about the elevated equities even though the equities haven't corrected as much. Any small trigger could possibly initiate accelerated fall in this scenario.
2. US 10Y yields (not shown here) are down to...
The DJI and SPX have been picture of clam for last month or so. But other markets are giving some very interesting cues. We could be in for some very interesting movements in a week's time when the Trump inauguration happens.
All the details around this would make this post very long.
I have the detailed rationale posted at...
Trump trade has had a beautiful run so far. No complains. Was needed.
It looks to be aging now though. Would be smart to book profits if you are already in there.
The honeymoon period would be over when the president-elect becomes the president. Or likely before that.
If this holds, naturally, all risk on assets should go down. Spx ( See my recent post) would be...
I don't know why my previous post didn't go online.
Anyways..Second try. My first call on spx failed. You can see that in my history.
Having said that the rationale is intact. SPX is overbought like anything in recent history. I am going to link monthly chart to this. So watch out.
Nice short set up brewing up here. Double top formation with a tired rally as reflected by divergence in CCI.
Also, the Vix is below 12. Not sustainable. Short term target 2190. If sustained, could target 2160
This weekly chart of USOIL is beautiful in its simplicity. With the OPEC finally managing to agree to act in common interest, a strong up move would be fundamentally supported and sustainable too. This should tie up well with the USDJPY idea posted earlier (see related ideas below) and the possible risk on scenario.