Charts for the Day

[anil_s_trivedi]

IT seems to be coming under more pressure if present levels difficult to hold...on other hand pharma is showing some sign of arrest in severe downtrend going on...

 

[anil_s_trivedi]

TCS breached key support zone, now safe only above it...else avoid...

 

[nitingosavi]

GM Anil sir,

Sir, can share your analysis for some banking stocks SBI/AXIS/YESBANK particularly ?

SBI 230/32 zone looks difficult for bulls?

 

[anil_s_trivedi]

GM Anil sir,

Sir, can share your analysis for some banking stocks SBI/AXIS/YESBANK particularly ?

SBI 230/32 zone looks difficult for bulls?

Dear nitinji,

SBI just tested trendline resistance coming from Jan-2015 highs...Its up 53% from Feb-2016 lows of 148.25...The levels of 220-225 was minimum expectation and it fulfilled...It may again be weak below the same zone...
On daily looking at trendline resistance the resistance zone is at 230-232 levels...

On weekly, commendable resistance only at 245-250 zone...


Axis Bank:

Again its up 53% from Feb-2016 lows of 366.75 levels...
Looking at chart intermediate tgt is coming in at 580-590 zone...so ideall potential resistance zone there only...


Yes Bank:

Up 77% from Feb-lows...See how comparative strength got rewarded in private bank...

Momentum indicators are on for rollover to downside...Also huge -ve divergence there..so stock look ideally needed some cooling here...1200 levels is coming to be potential resistance zone...

Below 1075-70 also weakness case will creep in...

 

[anil_s_trivedi]

IT seems to be coming under more pressure if present levels difficult to hold...on other hand pharma is showing some sign of arrest in severe downtrend going on...

Watch how Infosys & TCS of IT pack falling...

 

[amitrandive]

Watch how Infosys & TCS of IT pack falling...

Anil Sir ,

This seems to be the relative strength that you had indicated last time,correct ?

Please enlighten us more on that.

 

[anil_s_trivedi]

Anil Sir ,

This seems to be the relative strength that you had indicated last time,correct ?

Please enlighten us more on that.

Dear amit,

Its the simplest thing which traders ignore. It is nothing but ranking of sectors based on relative strength...Thats it...

If you had Relative strength ratios of all sectors just get them into ranking...for timeframes, i am using 5/20/60/180/240 days...its nothing but 1week/1month/3months/6months/12months....

 

[amitrandive]

Dear amit,

Its the simplest thing which traders ignore. It is nothing but ranking of sectors based on relative strength...Thats it...

If you had Relative strength ratios of all sectors just get them into ranking...for timeframes, i am using 5/20/60/180/240 days...its nothing but 1week/1month/3months/6months/12months....

Anil Sir

Relative strength compared to what ?
If possible could you share the basic formula or skeleton for this?

 

[anil_s_trivedi]

Anil Sir

Relative strength compared to what ?
If possible could you share the basic formula or skeleton for this?

Dear amit,

There are 'n' ways to calculate relative strength...

First a simple thing...what is intrinsic strength...its nothing but position of stock/index wrt to itself...whether its improving/deteriorating...
It can be seen with simply %change over 1week/4week...etc...etc...
For ex: if IT sector posting 3% gain this week and other sectors posted somewhat -ve to less then 3% gain, then It can be seen as potential candidate where intrinsic strength is improving...

The other one is relative strength...its nothing but position of stock/security wrt to stock/index...Here we are using sectoral index wrt index Sensex/nifty...

So how sectoral index are performing with respect to benchmark index like Nifty//Sensex.... If IT posting 3% gain and Sensex posting 2% posting gain. Then its clearly visible It outperforming Sensex here... or posing relatively better than other sectors...

First simple exercise on intrinsic strength can be done..for example...get 1 week return for all indices...and then just arranged them is ranking with ranking '1' as highest return over 1 week...so suppose you had 10 sectors...you will get ranking of all 10 sectors and highest ranking will be for sector which is clocking maximum gain over past 1-week...Thats it...


If we want to have relative strength then simply divide the 1week sectoral return by 1week index(sensex) to have ratio...now get these ratio for all sector..and then rank these ratio...thats it...Here we are using banchmark index Sensex, so its a relative way of calculation...

There are many ways of calculating relative strength...just search on net..i am using simplest example...

 

[amitrandive]

Dear amit,

There are 'n' ways to calculate relative strength...

First a simple thing...what is intrinsic strength...its nothing but position of stock/index wrt to itself...whether its improving/deteriorating...
It can be seen with simply %change over 1week/4week...etc...etc...
For ex: if IT sector posting 3% gain this week and other sectors posted somewhat -ve to less then 3% gain, then It can be seen as potential candidate where intrinsic strength is improving...

The other one is relative strength...its nothing but position of stock/security wrt to stock/index...Here we are using sectoral index wrt index Sensex/nifty...

So how sectoral index are performing with respect to benchmark index like Nifty//Sensex.... If IT posting 3% gain and Sensex posting 2% posting gain. Then its clearly visible It outperforming Sensex here... or posing relatively better than other sectors...

First simple exercise on intrinsic strength can be done..for example...get 1 week return for all indices...and then just arranged them is ranking with ranking '1' as highest return over 1 week...so suppose you had 10 sectors...you will get ranking of all 10 sectors and highest ranking will be for sector which is clocking maximum gain over past 1-week...Thats it...


If we want to have relative strength then simply divide the 1week sectoral return by 1week index(sensex) to have ratio...now get these ratio for all sector..and then rank these ratio...thats it...Here we are using banchmark index Sensex, so its a relative way of calculation...

There are many ways of calculating relative strength...just search on net..i am using simplest example...

Thanks for the detailed reply Sir!!!
:clapping::clapping::clapping: