 "SBI, ITC, Titan: Over 50% of Sensex constituents look weak on charts")
The BSE Sensex, a gauge of the performance of India's leading 30 stocks, hit the 50,000 milestone for the first time on Thursday, a remarkable feat considering the country's gross domestic product (GDP) is set to post its biggest-ever contraction this financial year due to the impact of the Covid-19 pandemic. The proximate cause for optimism now is the anticipation of good third-quarter corporate results, and the introduction of market-friendly measures in the forthcoming Budget.
The index hit an intra-day high of 50,184, but gave up the gains to close at 49,625, down 167 points. Yet, the index is showing tremendous optimism on technical charts for the coming sessions. As per the weekly and daily charts, the index is set to rise towards 54,000 levels in the next six months. Moreover, the index is witnessing aggressive buying momentum in the overbought territory of Relative Strength Index (RSI), suggesting the up move is confident of absorbing all the selling pressure emerging in the uncharted territory. READ ABOUT IT HERE
That said, there are few stocks on the index that are not exhibiting the expected momentum. Technical indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show that Bharti Airtel, Sun Pharmaceutical Industries, Oil & Natural Gas Corporation are not showing an optimistic view from a short-term perspective.
The RSI, which indicates strength and the momentum in a given stock, is showing a negative bias in 18 of the 30 constituents on the Sensex. Going forward, stocks like Axis Bank, Dr. Reddy's Laboratories, and ICICI Bank are on the verge of breaching their significant support levels. Additionally, the slowest running bank State Bank of India is also not showing strength on charts.
source:spidersoftwareindia
source:spidersoftwareindia
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