Gemstone Equity Research & Advisory Services

Blog posts : "Special Articles"

Special Note: What This Breadth Indicator Is Possibly Hinting About NIFTY?

Among other tools and indicators that any technical analyst might use to analyze the price charts, they would also use a Breadth Indicator to measure the strength of the trend in the underlying security or an Index. In the event of any uptrend taking place in any security or an Index, it gets impera…

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Special Note - Equity Indices Overstretched; Sectors To Look At For Adding A Protective Layer To Portfolios

Backed by strong FII inflows, the Indian equity markets continued their unabated surge in November. As the month ends, the markets have gained much more than what it had lost during the meltdown that was triggered by the Coronavirus pandemic.

The equities have stayed buoyant globally to the exten…

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Is "Risk-On" Environment Coming To An End? These Charts Answer This Question

The first quarter of this CY 2020 was quite a disaster for the equity markets. The month of February saw the onset of the Coronavirus pandemic and the spread of COVID-19 virus saw the equity markets world over witnessing a vertical crash everywhere in the range of 35% to 45% across the globe. The US…

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Special Note: Is Rally In Gold A Direct Threat To Equities? These 5 Charts Give An Answer To This

Gold prices have shown a great up move over the past several weeks. The precious metal has been marking new highs ever since it broke above the $ 1750 mark. Over the previous month, Gold has gained over $121 or 6.80 % on a monthly basis as of week ending Friday, July 24th. Though the monthly bar is …

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Special Note: Why INR is Resilient Against USD

Despite rising over 20% from the low point seen in March 2020, the Indian equity markets have continued to underperform the global peers. The figures of the recent giant short-squeeze speak for itself. The headline index NIFTY50 has returned 12.99% over the past three months. However, on a Year-to-d…

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Special Note: Why Moving Averages Should Not Be Ignored

Moving Averages are one of the most simple and age-old tools within a technician’s toolkit.
This humble indicator is nothing but a smoothing tool which smoothens the price data to form a trend following indicator. They do not predict price direction, but just predicts the current trend an…

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Special Note: These 3 Charts Answer Why Should You Prefer NIFTY Next 50 Over The Small-Cap Universe

The global equity markets have seen the mother of all volatile times during the first four and a half months of the year 2020. From the peak of early 2020, the key equity markets saw a sharp decline of over 35% in most cases. Following those lows, the stocks have also managed to recoup around 30% of…

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This Bearish Divergence Is Causing Short-Term Deceleration Of Momentum In Gold

The Gold prices marked the incremental high near USD 1748 levels in April. However, if we see, they have been marking modestly lower tops and bottoms on the daily chart and seem to have got trapped in a congestion zone between 1680-1748 levels.

After witnessing a sharp recovery from U…

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Using INDIAVIX The Right Way; Mistakes To Avoid When Analysing VIX

Volatility Index, VIX, often comes into the limelight in the periods of heightened volatility in the markets. Presently, the India Volatility Index, INDIAVIX, which witnessed a lifetime high of 86.64. From the closing high of 83.61, this Index, which also known as a fear gauge, has come off by nearl…

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With No Signs Of Equities Bottoming Out, These Two Charts Tell An Interesting Story

After declining over 35% from the 2020 peaks, the global equity markets found a temporary base, and in the current technical pullback, it has recouped over one-third of its total losses. Traders and Investors alike have formed different opinions on whether the Equities have bottomed out while they p…

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Special Note: These 3 Charts Have A Story To Tell; RRG Chart Point Towards Higher Alpha Generation On A Relative Basis

The headline index NIFTY presently trades near its life-time high levels and has returned a stellar 15% over the past 12 months and 1.08% on the Year-to-Date basis. Having said this, the loss of momentum and few negative divergences on the leading indicators are quite evident on the charts. It will …

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Special Note: Are We Looking At 2020 As A Year Of Capped Gains? These Charts Have A Story To Tell

While the year 2019 ended, we saw the markets ending near the high point of the year. Despite the negative ending on the last trading day of the year, the frontline NIFTY50 has ended the year with strong gains of 11.53% on a yearly note. However, that being said, the year has also left us with so mu…

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Special Note: What To Expect In Samvat 2076

The year that ended today with NIFTY closing at 11583.90 remained quite eventful for the Indian equity markets.
We traditionally wish “Happy and Prosperous New Year,” and the current year remains prosperous in a literal sense. On the last trading day of the current Samvat on 6th November 2018, …

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Special Note: Under-performance of Small Cap Index Against NIFTY; What It Means Going Ahead

Over the last couple of months, we have seen the NIFTY Small Cap 100 Index under-performing the headline NIFTY Index. If we analyze its recent performance, the previous 6-months have seen the NIFTY returning 8.76% while the NIFTY Small Cap 100 Index has lost 3.71%. The last 12-month performance of t…

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Special Note: Are PSU Banks Likely to Outperform Private Banks? See What RRGs Have To Say

We head in to the month which would remain most volatile and eventful as we face one of the most important domestic events – General Election Results.
The equity markets are hovering around their lifetime highs. On one hand, they grapple with not-so-favorable technical set up as they …

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Special Note: When VIX Defies Its Inverse Relationship With NIFTY

The Volatility Index - more commonly known as VIX is a measurement of market's expected volatility in the future. Analysts and Investors alike look at this tool to measure sentiment while making investment decisions. It reflects market participants psychology of greed and fear and it is often referr…

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Some Insights From The NIFTY Premiums

As we know, a futures instrument derives its value from its respective underlying asset. For example, the NIFTY futures instrument derives its value from the NIFTY's spot price. Though the futures price and the price of its underlying move in the same direction, they do not maintain the same distanc…

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Are We In For An Improved Market Breadth? The Level Of 9200 Holds The Key

The Indian markets saw a strong start to the week as the headline index ended with a robust gain of 132.65 points (+1.20%). With this move, the index has once again attempted to achieve a breakout. This being said, over past many weeks, the market breadth has been an area of concern. With each up mo…

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A Special Note: A Look At Broader Market Charts As Market Breadth Remains A Concern

Following a brutal decline that the NIFTY witnessed beginning September 2018, the index found its support just below 10,000 mark and witnessed a technical pullback. This technical pullback halted near 10950 level in early December 2018. Since then, for next two months, the index has resisted multipl…

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Announcing Partnership With

January 29, 2019 (REDMOND, WA) - has announced a recent addition to its team of contributing authors, Milan Vaishnav. Mr. Vaishnav has begun creating new content for the website, published under the blog "Analyzing India".  With this partnership, Mr. Vaishnav has become the first Sto…

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