Article Index

 

Technical Analysis of Stock Market Trend in India

Relative performance of Market Indices

 

NSE Nifty Next 50 (Nifty Junior) 

15 March 2019
Nifty Next Index is moving just below 200 day moving average. 
Nifty Next Index 50/200-dma bearish crossover is in progress.
Leaders: InterGlobe Aviation, Shree Cement, ICICI Lombard, Havells India, LIC Housing Finance, Pidilite Industries. 
Laggards: Oracle Financial, Vodafone Idea, Lupin, New India Assurance Company.
Bullish Sectors: FMCG, Finance. 
Bearish Sectors: Telecom.

World leading markets

22 February 2019
Top world leading market index outperformers: IBOVESPA, Dow Jones Industrial, Hang Seng, NASDAQ Composite.
Top world leading market index underperformers: IPC Mexico, Nikkei 225, BSE Sensex, Nifty 50.
IBOVESPA (Brazil) is trading above 200-dma with golden crossover.

NSE Nifty 50

15 February 2019
Nifty is moving below 200 day moving average. 
Nifty is moving in the range of 10200 to 11200 for longer-term.
Leading world markets are also struggling at higher levels and corrected after longtime.
Dow has moved above 200-dma and shows strength at present.

Leaders: Wipro, UPL, Tech Mahindra, Infosys, Titan Company, Hindustan Unilever, RIL. 
Laggards: Vedanta, Hindalco, M&M, Grasim, Coal India, ONGC, Tata Motors. 
Bullish Sectors: IT, FMCG.
Bearish Sectors: Metal, Automobile.

Stocks with stable up move over longer period 
• HDFC Bank, HDFC.

S&P BSE Sensex 30

25 January 2019
Sensex is moving just above 200 day moving average.
Sensex from a high of 21216 had moved below to a low of 7697 in 2008. 
Sensex moved up to 21108 in 2010 and corrected to 15135 in Dec 2011. 
Sensex hit a new peak of 30024 in Mar 2015 and corrected to touch a low of 22494 in Feb 2016.
Sensex like other leading world market index made record high of 38989 in Aug 2018.
However most of the leading world market index are trading below 200-dma. 
Sensex is moving in a band of 34000 to 38000.

Market movement will depend on FII inflow and strength of rupee against the dollar.
Increase in crude oil price will be a pain for India.
The long term trend of the market still looks up.
However short term correction and consolidation can happen on the way up.

Leaders: Axis Bank, Infosys, RIL, Hindustan Unilever, ICICI Bank, HDFC, HDFC Bank. 
Laggards: Coal India, Maruti Suzuki India, Hero MotoCorp, Tata Steel, Mahindra & Mahindra.
Bullish Sectors: Bank, IT, FMCG.
Bearish Sector: Auto, Metal.

Stocks with stable up move over longer period 
• HUL, HDFC Bank, HDFC.

Nifty Midcap 50

9 January 2019 
Nifty Midcap 50 Index is moving below 200 day moving average. 
Out of 50 Nifty Midcap stocks 19 are trading above 200-dma. 
That means 38% of Nifty Midcap stocks are trading above 200-dma. 
Nifty Midcap 50 Index 50/200-dma bearish crossover is still in progress.

Leaders: Torrent Pharmaceuticals, Muthoot Finance, Apollo Hospitals, United Breweries, Divi's Laboratories.
Laggards: Bharat Forge, Balkrishna Industries, Reliance Infrastructure, Jindal Steel & Power. 
Bullish Sectors: Pharma, Finance. 
Bearish Sectors: Auto, Infrastructure, Metal.

Stocks with stable up move over longer period 
• Indraprastha Gas, Tata Chemicals, Voltas.

 


 

• Triggers for the market • 

• FII inflow
• Liquidity in the system
• New tax code
• Inflation
• Corporate results
• RBI fiscal policy
• Outflow to primary  market
• Interest rate
• Crude oil price
• Union Budget

General election results
Markets liked the General election results in 2009 and Sensex jumped up by 2000 points. Markets also hit the upper circuit for the first time.
Markets liked the General election results of 2014 and Sensex jumped up by 1500 points. The markets have moved into a new bull orbit.

Monsoon
Good monsoon is important for agriculture.
Agriculture gives good support to the economy.
For 2014 monsoon is expected to be below normal.
Watch out for food inflation, general inflation and interest rate.

South west monsoon rainfall as % of long period average

 2007     106
 2008       98
 2009       78
 2010     102
 2011     101

 2012   

   92
 2013     106
 2014   

   95 forecast

[Source: dna dated 25 April 2014]  
 2018

   91