When setting out on a journey, do not seek advice from those who have never left home.

Global Markets

YTD Performance

HSI formed its low on 22.1.24 and from there has now moved up to close above 50dma in early Stage 1A. Though a long way to go but there now seems to be some light at the end of the Chinese tunnel.

Nikkei continues to march to its new highs.

Market Caps

YTD Performance

All sectors saw a U-turn this week trapping the bears as micro and small caps show a strong recovery from recent correction.

Those who bought the dip are definitely not regretting.

Nifty

Daily chart

Nifty bounced after taking support at 50dma which doesn’t break easily unless there is a negative event expected in near future.

With a strong support from trendline as well and RSI not showing any divergences, Nifty looks poised for a breakout to new ATHs (but…)

Nifty is giving all signs of a break-out but week 3 usually ends up breaking expectations of the bulls. The chart below is marked up for some important dates in the 3rd week since June’23.

Special dates to watch : Feb/20 and Feb/23 – will the trend continue or change this time ?

Banknifty

Daily chart

Last week’s expectation breaker trapped the bears as Banknifty continues to march upwards.

In terms of support Banknifty bounced strongly from 200dma and the trendline just like Nifty.

A double bottom with a W-pattern is in place as Banknifty halted today at an important junction : near its 50dma

Still not the time for aggressive longs unless we cross the W-neckline, the 50dma and 47150 which is the immediate resistance.

Nifty Indices

YTD Performance

The leaders PSUbanks, PSE and Energy have seem to weakened this week while Auto has zoomed and leading in the sectoral race.

Realty and Pharma continue showing strength as they march ahead and remain the favourites. Dlf now over 860.

Sector Ranking

YTD RSI

Auto is the ‘Top Gainer’ this week and the stocks are in fire mode.

Cement sector is the ‘Top Loser’ of the week so remain alert in these stocks as they are part of the Infra sector too.

Leading stocks

Leaders of every sector

Keeping a watch on where the leadership is in the sector helps to get the True Market Leader / Model Book Stock.

SR #	SECTOR	LEADING STOCK
1	Auto	Bosch
2	Cement	ACC
3	Commodities	BPCL
4	Defence	Nibe
5	Energy	KPIgreen
6	Fertilizer	Aries
7	Finance	HDFCAMC
8	Fmcg	Trent
9	Infra	BPCL
10	IT	Ofss
11	Media	Network18
12	Metal	Nationalum
13	Pharma	Abbot
14	PSE	IOC
15	Psubanks	IOB
16	Pvtbanks	Federalbank
17	Railway	Irfc
18	Realty	DBRealty
19	Solar	Waaree

Stocks to watch

Stocks with strong Weekly close

• Federalbnk
• Aartiind
• Wipro
• M&M
• HDFCAMC
• Bluestar

Your Job is to find the next Apple and handle it well.

– William O Neil