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Saturday, May 8, 2010

Stock Index Chart Patterns - BSE Sectoral Indices, May 7, '10

This week, I have already analysed a shorter-term BSE Sensex chart pattern on Tuesday, and a longer-term one on Thursday - which readers seemed to find useful under the current market conditions.

Instead of writing about the BSE Sensex chart pattern again, I am going to follow an old saying - a picture is worth a thousand words - and post a bunch of one year bar chart patterns of various BSE Sectoral indices.

If you prefer words to chart patterns, you may skip today's post. Those who like to look at chart patterns (hopefully some readers fall into this category because of this blog's contents), this post could give pointers to sectors you may want to look at, and sectors to avoid.

Enough words. Time for the pictures (I mean chart patterns).

BSE Auto Index

The BSE Auto index had been outperforming the Sensex during the up move, and has fallen just below the 50 day MA during the recent correction. RSI at 50%.


The BSE Bankex has also enjoyed a great run, having made a new high in end-Apr '10, and is currently seeking support from the 50 day MA. RSI also at 50%.

BSE Capital Goods Index

The BSE Capital Goods index is tracking the Sensex on the way down. It has formed a bearish triple-top. RSI at 30%.

BSE Consumer Durables Index

The BSE Consumer Durables index is looking bullish and is above the 50 day MA. The RSI is just below the 50% level.


The BSE FMCG index has just dropped below the 50 day MA and the RSI is a little below the 50% level. But it has made a bearish double-top pattern.

BSE Healthcare Index

The BSE Healthcare index is above the 50 day MA and has formed a saucer-like bullish pattern. RSI is just above the 50% level. No wonder they call this sector 'defensive'.

BSE IT Index

The BSE IT index is dropping fast after making a bearish double-top, but the downward target has almost been met. RSI has entered the oversold region. A likely pull back candidate?

BSE Metal Index

The BSE Metal index has really taken it on the chin, plummeting after a bearish double-top. RSI well inside oversold zone.

BSE Oil & Gas Index

The BSE Oil & Gas index has been decimated by government inaction on the pricing front. An attempted pull back has been resisted by the 50 day MA. RSI has emerged from the oversold zone but remains below the 50% level.

BSE Power Index

The BSE Power index is tracking the Sensex on the way down, and about to form a lower top-lower bottom bearish pattern. RSI at 30%.


Looks like the BSE PSU index has been in a bear market since making a top in Jan '10. All attempts at an up move have been thwarted by the falling 50 day MA. RSI is above the 50% level but heading down.

BSE Realty Index

The BSE Realty index has been in a bear market since the top made in Oct '09 - moving in a downward sloping channel. RSI is just above the 30% level.

BSE Mid-Cap

The BSE Mid-cap index has out-performed the Sensex on the way up and is seeking support from the 50 day MA. RSI is below the 50% level.

BSE Small-Cap

The BSE Small-cap index has also outperformed the Sensex and getting support from the 50 day MA. RSI is below the 50% level.

Note: Please remember that mid-caps and small-caps tend to fall more than the Sensex during bear phases.


Pinals said...

Really a picture says more then 1000 words, Can one say oil & Gas index & Power indes as forming H&S pattern..if yes then the priority sector is in real trouble..??!!

Subhankar said...

That's good observation - they do look like H-S formations, don't they?

Priority sectors are in trouble because of too much government meddling - the H-S is the effect, not the cause!

Pinals said...

Thanks Dada.. Its true that H&S is effect and not the cause.. but cause is represented as picture when data is converted..isn't it..??!! Anyays what you look towards various indises..Which is the worst to get affected & which is the least sector..??

Subhankar said...

Looks like Healthcare is least affected so far (people need to buy medicines regardless of the market conditions). Realty index chart is looking pretty bad.