Sectoral Relative Momentum (RelMOM) for the next few weeks.
Note: Relative Momentum from RS, is a custom script that has been developed in-house
The chart gives an overview of 10 sectors #NiftyMidCap #BankNifty #NiftyIT #NiftyFMCG #NiftyPharma #NiftyAuto #NiftyMetal #NiftyPSE #NiftyEnergy #NiftyRealty
Read on to get more insights on which sectors to avoid or consider
Sectors to Avoid:
- #NiftyAuto : rallying from 3 yrs. Lower peaks on Rel MOM. Warning signs of Top!
- #NiftyInfra : rallying from 2 yrs. Lower peaks, signs of top.
- #NiftyMetal : Every rise will be sold into, as per Rel MOM
- #NiftyRealty : Possible Top! Great exit for longs!
Sector looking Good:
- #BankNifty : Looking strong & rally to continue
- #NiftyPSE : Strong, but rallying from long, might be exhausted
- #NiftyFMCG : Looking ok, may still have legs to move, but generally slow mover, will test patience.
Neutral or Indecisive Sectors:
- #NiftyIT : in the process of bottom formation. Momentum not yet present.
- #NiftyPharma : Still sleeping. Will let you know when there is a breakout in Momentum
- #NiftyEnergy : seems oversold, no signs of Momentum yet.
Market Breadth:
- #Nifty500 & #NiftyMidCap are good indicators of Breadth:
- #Nifty500 : as long as the Rel MOM trends down, we can’t be in a Bull Market!
- #NiftyMidCap : Midcaps will see more pain (relative to Nifty)
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