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.
I prefer using classical technical analysis to get a perception about the markets, especially at higher timeframes. Here are a couple of charts on US Market NASDAQ Index (Daily 200 Moving Average Charts, Quarterly – Market Profile, Quarterly ADX Divergence, Quarterly Smooth RSI) with an interesting perception which indicates potentially overvalued NASDAQ charts with a greater mean reversion odds.
Nifty Pharma one the most hated sector in this bull market for a variety of reasons. The number one reason is negative returns since Apr 2015. Till now index had lost a maximum of 42.28% from its peak. Which is very close to the drawdown during the 2008-2009 crisis period. During 2008-2009 economic crisis period Nifty Pharma had made an extreme drawdown of 44% from its peak.
Karnataka Elections results are due for this week (on 15th May 2018). Interestingly month to date performance from the major indices shows that Nifty, Bank Nifty,Nifty Financial Services, Nifty Energy are the major indices where investors piled in for the month of May. Rest of the sectors shows negative growth month to date.
Nifty Smallcap index formed a classical bullish island reversal pattern during last week of March 2018 since then price mean reverted back to 200 Moving Average on the daily charts. Last 15 trading sessions its been hovering around 200MA.
Measuring the relative performance is essential for setting the right priorities for the Investing. Relative performance, expressed in percentile rankings and explains how well a sector is performing in comparison with other sectors.