Hasn’t the market already factored in the election result ?

Global Markets

YTD Performance

Global index is now at support with RSI at 40 and turning.

US30 bounced 1.67% on friday which is a great sign for US market. The Leading and Tech heavy US100 saw some selling / profit booking.

Market Caps

YTD Performance

Staying in cash with mid, small and microcaps is prudent with an event next week.

Market Breadth

New Highs / New Lows

With the broader market still not participating what’s different now is that market is now making higher number of New Lows while it was flattish last week.

We are at a point where if New Lows cross over New Highs then we may get into a correction mode starting next week unless “abki baar 400 paar” saves the market.

Nifty

Daily chart

With no follow-through coming in, we are now back to 50dma. With too many gap downs, its going to be tough for Nifty to reach ATHs without a very strong reason / event (eg. : 400 paar).

A shakeout at 50dma on Monday and then an expectation breaker on tuesday with high volume would be a great sign of markets holding on and rally would continue.

We will see that U&R (undercut and rally) if 400 will be going paar 🙂

Friday closed with an inside candle so if 22400 is broken, we may see a dip till 21500 (150dma) then 400 no paar!

Nifty Indices

YTD Performance

Not much difference in the leading sectors : PSE, Realty, PSUBanks, Auto & Metals.

Stay away from underperforming sectors, great traders follow this one important strategy of always staying in Alpha sectors and Alpha stocks.

Alpha(α) 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 / Alpha Stock.

SECTOR NAME	LEADING STOCK	SECTOR RSI
Auto	Exideind	60.46
Cement	Ambuja	40.54
Chemicals	Solarinds	40.60
Commodities	VEDL	53.11
Consumer Durables	Bluestar	59.74
Defence	Cochinship	73.85
Energy	KPIGreen	50.14
Fertilizer	Dhanuka	54.81
Finance	REC	55.62
FMCG	Trent	42.24
Infra	Siemens	55.22
IT	OFSS	32.76
Media	DBCorp	52.64
Metals	Hindzinc	59.45
Oil & Gas	Oil	48.69
Pharma	Zyduslife	44.31
PSE	HAL	59.33
PSUBanks	Iob	57.16
PvtBanks	Icicibank	54.73
Railway	Rvnl	67.24
Realty	Purva	61.38
Solar	Webelsolar	56.80

All Time High

Indices and Stocks

Indices :

• Realty

Stocks : Low risk, long setups :

• Adaniports
• Exideind
• Heromoto
• Glenmark
• Dixon

Your Job is to find ONE stock and handle it well.