In this video I have tried to discuss critical levels of Nifty and Banknifty and the rationale behind them. Also i have tried to squeeze couple of sectoral indices so as to have a better view to approach markets going ahead
Nifty 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!
Am I watching correctly ? inverted HS in spread chart of CNXAUTO/NIFTY.
If yes then it can give huge upside in maruti and heromoto but after breakout only. This sector has also become necessirty in india so may be considered as defensive one only and while general market may be under consolidation it will run up.
Comparing Nifty Auto to Nifty 50 on a weekly timeframe. There’s a bullish divergence between price and momentum. I’m looking for Auto stocks that have the same pattern along with failed breakdowns... What’s YOUR favourite Automotive stock?