Weekly Sector Summary – 16 June 2019

 

Divergent trends were witnessed in the Indian market with the stocks oscillating between gains and losses throughout the week led by global news. By the end, stocks registered losses for the second consecutive week on selling pressure in index pivotals. In the week ended Friday, Nifty fell 47.35 points or 0.4% to settle at 11,823.30, its lowest closing level since 23 May 2019. Small and mid-cap stocks underperformed the Sensex during the week.

On the domestic front, the annual rate of inflation (WPI), stood at 2.45% in May 2019 (over May 2018) as compared to 3.07% for the previous month and 4.78% during the corresponding month of the previous year. Consumer Price Index (CPI) inflation rose to 3.05% in May 2019, compared with 2.99% in April 2019.

IIP accelerated to a six-month high of 3.4% in April 2019, from 0.4% growth recorded in the previous month. Also, the industrial production growth for March 2019 has been revised upwards to 0.4% from (-) 0.1%.

Nifty Realty is the biggest loser as the bad news about the NBFC mess continues unabated. YesBank lost 17.58 %. ADAG group stocks lost 20 % to 40 % during the week.

 

Nifty Sector Summary

 

 

Nifty Trend Model

 

 

Nifty Sector Summary

Auto

16 June 2019: Index @ 8032. ADX is strengthening and PPO negative crossover was just triggered. More downside possible.

9 June 2019: The bearish bias continues. Can move down to touch the lower end of the Bollinger band placed at 7844.

 


 

 

Bank Nifty

16 June 2019: Index @ 30615. On the way to 50 days EMA.

9 June 2019: Bearish divergence on the charts. PPO topping out. Expect downward/sideways bias, a retest of 50 EMA possible.

 


 

 

Commodities

16 June 2019: Index @ 3630. Index broadly sideways after the strong pullback in March. A pullback to 50/200 day EMA possible.

 


 

 

India Consumer

16 June 2019: Index @ 4805. Reversing from the top end of the range. Lower prices coming.

 


 

Energy

16 June 2019: Index @ 16117. Looks like the uptrend is over, lower levels coming. Check Reliance chart for confirmation.

9 June 2019: Breakout failed but still in a sideways/uptrend action. Will be bearish below 15800.


 

Financial Services

16 June 2019: Still the strongest. Holding on. But for how long if Nifty cracks from here.

9 June 2019: The strongest sector in the market. Daily PPO topping out from the overbought region, expect some sideways movement or maybe a correction to the 20/50 EMAs.

 


 

FMCG

16 June 2019: Index @ 29966. Very similar to the Consumption index. Reversing from the middle of the range.

9 June 2019: Sideways and rangebound for the last six months and underperforming the Nifty.


 

Infra

16 June 2019: Index @ 3308. Bullish Flag. The most bullish sector in the current context, markets expecting something significant in the budget. May be a rally before the event. Keep an eye on the sector stocks – LT etc.



 

IT

16 June 2019: Index @ 16268. Finally the breakout and price holding above the level. PPO positive and looking strong. Watch out for ADX move above 25 for pickup in momentum.

9 June 2019: Again failed to take out 16200, Watch out for PPO movement for further direction.


 

Media

16 June 2019: Index @ 20186. Negative crossover for PPO and ADX move above 30 happened this week. But the index is also at the lower end of the trading range.

9 June 2019: In a broad range with a downward bias. Negative outlook till the resolution of ZEE group issues. Watch for the negative crossover in PPO with ADX moving up above 30. A down leg can start again.


 

Metal

16 June 2019: Index @ 2944. The index is still hanging on to the same level. I think some directional move will come in next 7-10 days.

9 June 2019: In a downtrend for the last nine months. Bearish Flag formation, breakdown below 2900, watch PPO negative crossover.


 

Pharma

16 June 2019: Index @ 8083. Sustaining the breakdown but acceleration missing.

9 June 2019: A fresh breakdown below previous lows. Downward acceleration expected.


 

PSU Bank

16 June 2019: 🙂

9 June 2019: Only God can trade and make money. You can try.


Realty

16 June 2019: Index @ 270. The biggest loser for this week nearing 50 EMA. More downside possible.

9 June 2019: Bearish divergence on the charts. PPO topping out. Expect downward/sideways bias, a retest of 50 EMA possible.


 

Service Sector

16 June 2019: Negative PPO crossover happened last week. Expect a pullback to 50 EMA.

 

 

 

Unless you buy a stock at the exact bottom (which is next to impossible), you will be down at some point after you make every investment. Your success entirely depends on how dispassionate you are towards short term stock price fluctuations. Behavior matters.”
– Joel Greenblatt

 

 

 

Weekly Sector Summary – 16 June 2019
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