Currently, Nifty 50 has divergence with Bank Nifty / Nifty Financial. Financials are 38% of Nifty 50's Sector Representation.
If BankNifty resolves higher, the best constituent will be the stocks making higher high. SBIN is an example of the same.
The Insurance industry group within Financials is posing for a breakout. HDFCLIFE, SBILIFE, ICICIPRULI are close to their all-time high.
SBI Life Insurance
ICICI Prudential Life Insurance
Nifty 50 is trading at its high, but its top 10 constituent index is yet to close above February 2021 high. It shows a lack of participation from top largecap names.
Base metal price bounced off from 2018 high. It shows that trend is positive for Nifty Metal Index.
Nifty IT continues to maintain relative strength. Media and Realty are long-term underperforming sectors that are now gaining momentum. Keep an eye on the multi-year breakout in Nifty Realty.
Scarcity ≠ Inflation hedge. Until Next week.🖖