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August 18, 2022

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Nifty: Which stocks will lead the next bull market? Check Technical Indicators


New Delhi: Lena nifty Bulls on a roller coaster ride, the stock market which was in a definite uptrend a few months ago shifted to an uptrend-under-pressure mode and then into a downtrend mode. After hitting a 52-week low of 15,183 last week, Nifty is now back in a rally-attempt phase as the bulls take the plunge as if they were genetically pre-programmed to do so.

However, the technical indicators are yet to indicate that the Nifty has bottomed out.

“When the market direction changes, it is important to have your watch list ready and act accordingly. Noteworthy list is a great way to find options, focusing on shares That seems to hold up well during a correction, financial services firm William O’Neill India said in a note to investors.

It suggests investors to find higher stocks Relative Strength Rating, “You also want your stocks to be from major groups, so emphasize a solid group rank. Fundamental strength should also play an important role. Remember, you are looking for the best the market has to offer. This means finding stocks with good quarterly sales and profit growth. The EPS rank will help you here.

Their analysis shows that RS rating Major bank stocks with higher weightage in Nifty have corrected in the last five weeks, which is a positive sign. The RS rating of IT stocks also improved last week.

According to the report, if the Nifty rises from here, then these sectors can be potential market leaders.

On the other hand, metal stocks, which have been under pressure due to fall in commodity prices, have a very poor RS rating and are showing no signs of improvement.

“RS Ratings”

, and fell to 15-30, indicating that the damage is deep and may require time to repair,” the report said. While the RS rating of pharma stocks remained relatively unchanged.

“Without trying to predict and interpret the stories, we will take whatever the market gives us and continue to monitor the situations as they unfold. Stocks that are breaking their bases, with higher relative strength and better fundamentals, can do well,” said William O’Neill India.

Both Nifty and Nifty IT have lost 2.64 per cent in the last one month period Nifty Bank 1.93 percent less. Metal stocks were the biggest losers as the metal index is down 11.27 per cent in a month. On the other hand, the pharma index has registered a decline of 4 per cent in its value.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)


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