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Decadal Breakout in ICICI Bank-HDFC Bank Ratio

Our weekly Compendium

Our Chart of the Day (COD) weekly compendium offers insight into the macro signals, global trends, market perspectives, sector calls and actionable ideas highlighted during the week.

Big Base Breakout in NDX Projects 30%

The Nasdaq leadership of the bull market is catalyzed further with relative trends taking out the barrier that existed for more than three years. Long-term breadth indicator for the broadest segments of the US equities (NYSE Composite, Russel 3000, S&P 600 Small Cap and S&P 400 Midcap) has reverted to the “equilibrium” point.

Decadal breakout in ICICIB-HDFCB Ratio

The recent turbulence has reiterated the long-term big picture of ICICI Bank leadership over HDFC Bank. The big milestone here is indicated through a decadal breakout in the ratio projecting 40% long-term target for the ratio (mostly 12-18 months or 18-24 months)

Sensitive Clusters Near 21200 Contain the Hit

In this edition, we are showing a sensitive point for Nifty at 21214. This is the average of the Nifty since the market entered a decisive long bias. The latest dips are getting contained around an important channel breakout point near 21200. Last panic was 20 December toward the low of 20976. We expected the current shakeout to be contained above it. A negative surprise would be toward 20600; the probability for that is low.

Tale of Two Triangles: Ujjivan and AIA Engineering

Two triangles evince interest from the way they broke in opposite directions on 24 January. Both are Ascending Triangles with Ujjivan resolving on the negative and AIA Engineering resolving bullishly. The result and extent of triangle breakouts or breakdowns in individual stocks are guided by the main market trends. Post pattern implications for both these stocks are discussed from that perspective.