Market Internals suggest WEAKNESSCNX500 Relative Strength
Attached: Nifty 500/ Nifty 50 Daily Chart as of 21st March 2023
- I am watching this Ratio Chart to turn down after Retesting a Confluence Zone
- Its looking Bearish currently post a Rising Wedge breakdown and Three Black Crows candlestick pattern
- It signals Weakness in the Broad Market relative to the Index.
- This Chart had Topped out in Sept 2022 and since then there has been Under the Hood Selling in the Market.
This is a Leading Indicator of the Broad Market Strength/ Weakness
And comes under the Study of Intermarket Analysis
Search in ideas for "RATIO CHART"
NIFTY/SPX
THIS CHART SHOWS HOW NIFTY HAS PREFORMED AS COMPARED TO SPX (US MARKETS )
use monthly timeframe
THIS IS A RATIO CHART OF NIFTY AND S&P 500 OF US MARKETS .
It shows how nifty has outperformed spx ( us markets ) during past time and as an when te ratio hits 4.4-4.6 levels we have witnessed a crash.
similar situation is arising as of now .
in simple terms india ka bazar 4 times mehnga hai us bazar se tabhi fiis and big institutions are taking out money from india .
we will start investing once this ratio reaches near 3.60
Nifty PSU Bank to Pvt Bank Ratio Chart BreakoutNifty PSU Bank Index is outperforming Private Bank Index by a big margin. Current Situation is Similar to 2004-2008 Period where maximum money was made by Public Sector Banks. Public Sector Banks where NPA's have bottomed out and Banks with High Provision Coverage Ratio has potential to surprise everyone on the positive side.
Chart Suggests that PSU Banks can Outperform the Private Banks by Hefty 30-35% in Next 1-2 years. Meaning- If Private Banks Fall by 1.35%, Strong PSU Bank Index will fall just by 1% and on the upside if private bank index rises by 1%, Public Sector Banks will rise 1.35%.
NIFTY/S&P500 at Trendline SupportWe published our initial idea on NIFTY/S&P500 in Oct'21 where we highlighted the long-term resistance which was at play for the ratio chart. That resistance played its role well and now we are at the diagonal trendline support which was created during Mar'20 fall. This is also the 200DMA as well as 200WMA zone for the ratio. Will the Nifty/S&P500 hold this support and return back up from here? We will be watching the price action and keep this space updated.
NIFTYMETAL/NIFTY Bounces from 31.8 Fibonacci Retracement ZoneNIFTYMETAL/NIFTY ratio chart is exhibiting retracement from its pullback from last highs. The ratio has shown successful retracement toward 0.318 Fib level and seems to have successfully bounced from that level. This is bullish development for the metal stocks in the coming weeks. We may see the price going back to the previous high and beyond.
Nifty Auto/Nifty Ratio Chart Weekly BreakoutNifty Auto/Nifty relative strength chart (CNXAUTO/NIFTY) seems to have broken out of it long held weekly resistance. If this breakout goes through, we can see cyclical bullish trend on all major auto stocks. Looks like bullish times ahead for India's auto industry!
Will Gold sustain its Bull Move !!! DOW/GOLD ratioAs can be witnessed from the ratio chart of Dow vs Gold that its trading at its crucial support of 14.15 levels whereas the current ratio is 14.45. Correlation between the pairs is almost -0.98 which is a perfect negative correlation.
Hence we assume there is a minor space to fall till that crucial level of 14.14 levels. Any trade near that ratio may be bullish for the DOW and Negative for Gold.
If the ratio falls till that levels then the possible levels for the Dow would be :- 24400 levels.
BankNifty Has Much More Room To Drop Further.This is the ratio chart of BankNifty Vs USDINR. As One can see it is trading at the very high range of linear regression channel. and previously whenever that happened it was followed by deep correction. Expecting much lower levels on BankNifty, At least 20000.