Market MATH & Watchlist

2-June-2024: Accumulation before Election results

MATH: Momentum Anticipation and Trend by Homma:

---

MATH last week: Click the link

---

As technical traders, We

“Anticipate, but confirm. Wish, but only react.”

---

Trend:

The short-term market trend is DOWN

But is around the oversold territory.

Looking to find a bottom

Momentum:

Short-term momentum is down.

N50:

At the channel Midline.

Forming an intraday Base.

N500:

At the channel Midline.

Net4% Movers:

Showed a positive value on Friday.

The resolved plot also shows a sideways base.

Anticipation:

Channel midline can act as excellent support.

Pair it up with the accumulation and bullish action on Friday.

We can anticipate a bullish bounce.

The Ascending Channel breakout would be on the cards if the bounce is strong.

Remember this is anticipation,

As usual, we wait for confirmation and react.

---

Key Indices:

Adani Index looks poised for a Big Base Breakout:

(We can make a case that it has already broken out last Friday)

Summary:

Strongest (short term and medium term):

• PSU (shipbuilders, Railways, etc)

• Banks- PSUs (look for Big Base Breakout candidates)

• Auto/Anc

• Power

• Metals

• ADANI

If you are too confused then just focusing on PSEs and Adani’s would not be a bad idea

Potential Relative strength candidates for the future:

---

Watchlists: