Alpha India Indices – Top sectors
As the market bias remains negative on a minor level and NIFTY is still above true trendline supports at 5,400, we decided to have a look at the top performer Indian sectors in order to see which ones have the potential to fall more when the breakdown happens.
BSE Consumer Durables, BSE Auto, CNXIT, NSEBANK and BSE Metals are the best sectors according to the daily Jiseki rankings. We did a relative performance analysis between 3 of them (Auto, CNXIT and NSEBANK) and NIFTY to see how these sectors stand compared to the broad market. The result was the same in all three cases, negative structures showcasing the underperformance of NIFTY. This further confirms our rankings and highlights the ongoing outperformance of the respective sectors. Since performance is cyclical, these are the sectors which should underperform next. Considering our anticipation of a breakdown, these sectors should fall more than NIFTY in the weeks ahead.
The subminor structure, however, does not look ready for a breakdown yet. Most of the sectors seem to be in an ongoing second wave correction with a pending subminor leg up before the third impulse down begins. Even if this last rise takes up a few more days, we are prepared to put our short ideas into action once the price confirmation is here.
Alpha is a daily strategy signal product that gives trading and investment signals. Alpha is a numeric Ranking product based on TIME fractals. The signals are illustrated through tracker and running portfolios. Alpha can be used by fund managers for relative allocations, traders for leverage bets and high net worth clients for selective trades. Alpha is a part of the time triads analytics developed by Orpheus Research.
Coverage India: CNX100 traded stocks and Indian Indices.
Michesan Anna-Maria, Head of India Research. Anna discovered her interest of markets immediately after completing her graduate studies in Economics. She followed it up with post graduate studies in corporate finance. A host of research work in behavioral finance, option strategies and quantifying market sentiment followed. Anna covers Indian equity and combines Elliott, Time Fractals and Time Analytics to deliver accuracy across time frames. To review some of her work, check out the annual India accuracy report 2009.
Author: Orpheus | Date: 11 May 2011 | Comments (0)
Categories: India, Research Updates
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