Siemens is showing signs of short term trend reversal as strong resistance building around 1370 – 1380 zone. More over the price action points to trend exhaustive trade setups. Price acceptance below 1350 will bring more weakness towards 1300 and 1275 levels.
RRG Charts shows a possible underperformance from the Major World Indices like Sensex (India), FTSE (U.K), DAX (Germanay) as the relative momentum and relative strength declines relative to S&P500 and also rotating in the lagging quadrant.
Too many price rejections witnessed in 9700 price zone. Could be a strong resistance zone on EOD basis in the very short term. Also remember that we are in the 9600-9700 zone where last month price spends most of the time in June 2017 series expiry in a highly coiled fashion.
Motherson Sumi price action shows a possible short term trend reversal post hitting all time high yesterday with resistance getting built around 490 reference. Sentiment turned negative on the daily charts post the price rejecting from the all time high. Short term corrections are expected as long liquidations and profit booking is expected in this counter.
RRG Charts shows how world indices is positioned relative to S&P 500. BSE Sensex and Chinese SSEC are showing positive momentum. Hook reversal witnessed in BSE Sensex with regaining momentum and relative strength. Other world Indices like Nikkei , Hang Seng, CAC, DAX , FTSE are showing increased momentum but with decreased relative strength which indicates possible underperformance in the very near term for these indices relative to S&P 500
Rating Agencies like ICRA, CARE and moody’s downgraded RCOM on Tuesday (30th May 2017). Moody’s cut RCom’s debt ratings to Caa1 from B2, suggesting very high risk of default.
L&T futures today formed a bearish outside bar as the price rejected at its 52 week high. It is a strong trend reversal setup. Monitor for the resistance build up around 1818 zone.
Jindal Steel is showing short term price rejection setup on the 30min time frame. Its good to monitor for short term correction with resistance around 127-130 zone. Short Term trading sentiment is negative. Consecutive 5 day trend of making higher high is observed. On Wednesdays intraday session it also tested the 18th April high before price rejection at the top.
Nifty Smallcap and Midcap stocks are in correction mode and fallen from the peak in the last 6 consecutive days. Nifty SmallCap and Nifty Midcap index had lost 6.3% and 4.4% respectively. However Nifty 50 largecap had lost only 0.7% for this week. Both Smallcap and Midcap indices are underperforming Nifty 50 index largely.
Moody’s Investor service – Credit Rating Agency downgraded China’s sovereign credit rating for the first time in nearly 30 years,citing expectations that the country’s financial strength will deteriorate in the coming years as debt keeps rising and the economy slows.