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Viewing report
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Alpha India Indices – Top Sectors
Orpheus Capitals, May 2011, Pages: 10
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
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