Every Bull market needs a Leader and a big leader. But unfortunately in India - Nifty has been lackluster over last many months with no stock offering any solid support to the market. A Bull market cannot sustain with the index showing signs of stress.
Look at the daily chart of Nifty and how bearish it appears. It needs some solid help from one of the big stock to save the structure of the market. The big question: Can Reliance offer that support? Now, don't dismiss it as wishful thinking. I believe in listening to market and here's the evidence of my statement:
I tweeted this on Dec 18, 2015
Every stock tells a story. There was a bullish theme across all Reliance family stocks and Reliance continued to offer leadership. This is my tweet on Jan 02 2016
Reliance did not surprise me. Even though Nifty sold off in last few days but look at Reliance stock - a nice uptrending chart
That's not all - Reliance is on verge of starting a huge bull market if it crosses 1040-1140 band. This will signal that India is decoupling from the rest of the world. Will that happen - only time will tell. As of now, signs are encouraging. The bullishness is not restricted to Reliance stocks, it's there in every Reliance family stocks
Just look at Reliance Communication - Breakout and Holding Support
The structure of Reliance Communications is extremely bullish and all this is happening despite extreme bearishness in Global market. Even Reliance Capital - charting a bullish path
What does this all mean?
We don't know what will happen in future. We can only go by current evidence and signs. Reliance is doing something extraordinary in current circumstances and one would be foolish to dismiss it.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication, you agree to make no trade relying in whole or in part on the comments of the writers