Nifty Smallcap index formed a classical bullish island reversal pattern during the last week of May 2020 since then index rallied from 4000+ levels to 6000 levels.
Thought of titling “What could possibly go wrong with Nifty IT sector” – however, thought of let’s not get into overhype mode. By any means, IT is the hot sector in town. And the valuation of the counter is skyrocketing and investors are busy chasing the momentum.
Last time we tried to evaluate the fair value of metal index using extreme sentimental and running point of control when the metal index stares at 60% draw-down.
When the whole world went for a lock-down and economy brought to the brink of the collapse entire global equity markets saw a V-shape recovery except the Indian Banking Sector.
Bank Nifty Futures today had a bearish engulfing day with the sector-wide sell-off. Since May 18th Bank Nifty futures is trading a broader range 17000- 22000 and Bank Nifty has broken the range on Tuesday followed by a bearish engulfing pattern.
Nifty 500 aka CNX500 trading between 8400-10000 levels since June 2017. Recently Nifty 500 for some time struggled around the psychological reference 10000 levels. Broken outside the upper balance, however, failed to continue sustaining above the balance indicating possible tired investors.
Since the start of Jan 2018 Smallcap index had undergone a 40% drawdown which is one of the worst drawdowns next to the 2008 meltdown of 77% drawdown. To be remembered the smallcap meltdown started from the Union Budget 2018 week post the announcement of LTCG taxation
Last time Nifty Pharma rejected around 10700+ levels. Interestingly this time both short term and medium term view sentiment shifts to a positive mode which brings a positive outlook into Nifty Pharma sector. More likely this time 10700 is likely to breach this time.
Nifty Futures quick flip is in buy mode since 31st Oct and more amount of time is spent in that signal. Current immediate resistance comes around 10615 levels with a possible short-term move towards 10480 levels. For any positive momentum to occur price need to scale back above 10615 levels. Daily Trading sentiment holds positive.
Mass sectoral positive change is witnessed on Monday’s trading session across daily and weekly timeframe. The positive sentimental change reflected in most of the sectoral indices on daily and weekly timeframe except FMCG sector on daily timeframe and Nifty IT, Nifty MNC, Nifty Metal on the weekly timeframe. Sectoral Indices – Daily Interesting facts are […]
Listen, IT is the hottest sector when USDINR is hitting the all-time high. pharmaceutical and information technology are the sectors which earn a big part of their revenues in dollars. Every dollar earned through exports means more money added to the bottom line. Year to Date Nifty IT Sector gained 36.4% and a whopping 700% returns since Feb 2009. But I’m here to tell that “you should always leave a party early when the sector is on steroids”.
Pharma is an interesting sector to watch out for the rest of the year 2018 as Nifty Pharma Index today touched the psychological reference 10000 levels and also managed to close above 10000 levels which are also fresh 2018 year to date high. Interestingly Weekly sentiment turned positive in the pharma sector that brings more medium-term bullish momentum in this counter. Monthly Sentiment too holding positive for the last two months which brings long-term bullishness in this counter.