The SBI case

Today’s Alpha India report carries an illustrative example of how best performers tend to underperform once the performance cycle reverses.
We have an anticipated and happened case on SBI, one of the best performers of the Indian Early Economic sector. We started the trade on 16th May and it delivered 11.5% in 7 days. Prices have now hit our first target at 2,300 levels and we expect at least a subminor bounce from the respective supports. A break sub 2,300, however, would suggest that the leg down is extending lower till our next target near psychological 2,000.
We compared the stock against its sector index, NSEBANK and the daily relative performance looks negative in favor of NSEBANK. The structure looks like a head and shoulders reversal which points lower towards further underperformance of SBI (slide 2). The Elliott structure of NSEBANK also looks negative as prices broke key supports at 10,800 and should head lower to psychological 10,000 (slide 3).
The market bias remains negative as NIFTY turned back from our highlighted resistances at 5,500 levels. A break down at 5,400 till previous lows at 5,200 or even lower seems now imminent (slide 4).
Enjoy the latest Alpha India Indices.

Alpha is a daily strategy signal product that gives trading and investment signals. Alpha is a numeric Ranking product based on TIME fractals. The signals are illustrated through tracker and running portfolios. Alpha can be used by fund managers for relative allocations, traders for leverage bets and high net worth clients for selective trades. Alpha is a part of the time triads analytics developed by Orpheus Research.
Coverage India: CNX100 traded stocks and Indian Indices.
Michesan Anna-Maria, Head of India Research. Anna discovered her interest of markets immediately after completing her graduate studies in Economics. She followed it up with post graduate studies in corporate finance. A host of research work in behavioral finance, option strategies and quantifying market sentiment followed. Anna covers Indian equity and combines Elliott, Time Fractals and Time Analytics to deliver accuracy across time frames. To review some of her work, check out the annual India accuracy report 2009.