Analyzing India

Is This Sector Set to End its Underperformance?


Nifty Financial Services Index ($CNXFIN)

The NIFTY Financial Services sector seem to have ended its short-term underperformance. The Index has broken out from a falling channel and has formed a gap, which indicates greater push to the upside.

The RSI has marked a fresh 14-period high, which is bullish. It also shows a bullish divergence against the price. The daily MACD has shown a positive crossover; it is now bullish and above its signal line.

The NIFTY Financial Service sector is in improving quadrant on the weekly RRG when benchmarked against the broader NIFTY 500 Index. On the daily timeframe as well, it has ended the Improving Quadrant, with the JdK Momentum crossing above 100. This marks a potential end of underperformance on the index against the broader markets.

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst | | SEBI Reg. No. INH000003341

Milan Vaishnav
About the author: , CMT, MSTA is a qualified Independent Technical Research Analyst at his Research Firm, Gemstone Equity Research & Advisory Services in Vadodara, India. As a Consulting Technical Research Analyst and with his experience in the Indian Capital Markets of over 15 years, he has been delivering premium India-focused Independent Technical Research to the Clients. He presently contributes on a daily basis to ET Markets and The Economic Times of India. He also authors one of the India's most accurate "Daily / Weekly Market Outlook" -- A Daily / Weekly Newsletter,  currently in its 15th year of publication. Milan's primary responsibilities include consulting in Portfolio/Funds Management and Advisory Services. His work also involves advising these Clients with dynamic Investment and Trading Strategies across multiple asset-classes while keeping their activities aligned with the given mandate. Learn More
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