The market knew 400 won’t be paar !

Global Markets

YTD Performance

All global indices jumped off support from last week. Friday saw a weak closing in US Indices compared to the movement during the week.

As NVDA goes, the market goes….NVDA was extended as it was 25% from the 50ma. Time for it to cool off / re-basing before next leg upwards ?

Market Breadth

New Highs / New Lows

We saw all the drama with 400-not-paar but with BJP still in majority, we have put in a bottom for now with Nifty correcting almost 9% from the top.

New Highs seem to have started improving and this looks like market may stabilize going into the next 6 months of 2024.

Nifty

Daily chart

The break of 50ma on high volume confirmed that 400 wont be going paar.

Historically, surpassing 400 seats in the Lok Sabha has been a rare feat. The only instance was in ‘84 when the Congress, led by Rajiv Gandhi, won 404 seats following Indira Gandhi’s assassination.

Nifty is now around 50 points away from its ATH and that’s a clear sign that market expects a stable NDA government.

As Jim Roppel says : in a bull market, several 8, 10 and 15% corrections are normal. So how you to deal with this will determine if you will stay in the market for long or not.

Nifty Indices

YTD Performance

As with pre-elections, so with post-elections : don’t look beyond Realty and Auto. Next up would be Banks and Finance all thanks to the shopping spree people are on!

Stay away from underperforming sectors, Legendary 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
Adani Group	Adanipower
Auto	Amara Raja
Birla Group	Abfrl
Cement	Ambuja
Chemicals	Solarinds
Commodities	Vedl
Consumer Durables	Bluestar
Defence	Cochinship
Electric Equipment	Tril
Energy	KPIGreen
EV and Adv Auto	JWL
Fertilizer	Dhanuka
Finance	Sbin
Fmcg	Trent
Hotels	Eihotel
Infra	Industower
IT	OFSS
Logistics	Aegislog
Mahindra Group	M&M
Media	DBCorp
Metals	Hindzinc
Oil & Gas	Oil
Pharma	Zyduslife
PSE	Hal
PSUBanks	Iob
PvtBanks	Icicibank
Railway	Rvnl
Realty	Purva
Roads	IRB
Solar	Webelsolar
Tata Group	Trf
Telecom	Industower
Textile	Centurytex

All Time High

Indices and Stocks

Indices :

• Auto
• Fmcg
• Pharma

F&O Stocks : near buy point :

• Auropharma
• Bhartiartl
• Cholafin
• Dixon
• Exideind

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