Weekly Sector Summary – 9 June 2019

 

The markets began the week strongly, with the Sensex and the Nifty closing above 40,000 and 12,000 on Monday on expectations of an RBI rate cut on Thursday. The concerns over the DHFL crisis and rating downgrades overshadowed the bullish sentiment and the benchmark somewhat erased the gains it made on Monday.

On Thursday, the announcement of reduced policy rates and RBI’s dovish stance in the credit policy failed to impress investors in the absence of any immediate measure to deal with the NBFC crisis. The markets sold off immediately worrying about the possibility of contagion and fresh NPA creation due to defaults and rating downgrades etc.

Nifty closed the week with a cut of 1.8% with PSU banks the worst affected. Interesting to note that not even one sector has closed in the green.

 

NSE Sector Summary

 

Nifty Sector Summary

FMCG

Sideways and rangebound for the last six months and underperforming the Nifty.


 

Financial Services

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.


 

Metal

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


IT

Again failed to take out 16200, Watch out for PPO movement for further direction.


 

Auto

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


 

Bank Nifty

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


 

Realty

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


 

Media

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.


 

Energy

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


 

Pharma

A fresh breakdown below previous lows. Downward acceleration expected.


 

PSU Bank

Only God can trade and make money. You can try.


 

 

I am introducing a new trend measurement tool this week. It will categorize all the sectors into A to F groups based on their bullishness in terms of trend strength. All the sectors will rotate through A to F progressively.

 

 

 

 

 

 

 

The matrix will be updated on a weekly basis. The progression will become clear once we have a few weeks of data in the matrix.

 

 

 

Weekly Sector Summary – 9 June 2019
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