European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • The Stoxx 600 lost 26bps last week and is finding resistance at its all-time high. The index is currently consolidating in its pivot zone and remains in a Confirmed Uptrend with four distribution days. The index has gained for seven consecutive months now.
  • Overall, we remain positive: of the 17 indices we cover, 13 are in a Confirmed Uptrend and four in an Uptrend Under Pressure. Distribution in the region remains low.
  • Underperforming over 26 weeks, Utility continues to show signs of improving short-term momentum, while deteriorating for Consumer Cyclical, Transportation, and Basic Material sectors.

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • The Stoxx 600 gained 89bps last week after closing in red the previous week. It is currently 1% off highs and is in a Confirmed Uptrend.
  • Of the 17 indices we cover, 13 are in a Confirmed Uptrend and four in an Uptrend Under Pressure. We upgraded Norway to a Confirmed Uptrend. The average distribution day count has come down to 3.71 compared to 4 last week.
  • Our rotation chart continues to show accelerating short-term momentum among Utilities and Energy.
  • We added Euronext (ENX.FR) to our Focus List. Other actionable names in the Focus List include Keywords (KWS.GB) and Halma (HLMA.GB).

Indian Beverage Sector

In our last report released June 3, we had taken a cautious stance on the fast-moving consumer goods sector. However, following March-June quarter results, we are more optimistic on the sector based on solid quarterly results and positive comments from management. Given the increased risk sentiment in markets, we believe Staples, especially Indian beverage stocks, provide a good opportunity to park your funds.

 

We recommend three stocks from the sector: Radico Khaitan (RKT.IN; GFL Emerging constituent); Varun Beverages (VB1.IN; GFL Emerging constituent), and United Breweries (UBB.IN).

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • The Stoxx 600 declined 148bps last week, recording its biggest weekly fall since February. The index found support at its 21-DMA and is currently 2% off highs.
  • Of the 17 indices we cover, 12 are in a Confirmed Uptrend and five in an Uptrend Under Pressure. We upgraded Portugal to a Confirmed Uptrend and downgraded France, Norway, Sweden, and the U.K. to an Uptrend Under Pressure.
  • All the sectors, barring Health Care and Utility, closed in negative territory. Consumer Cyclical and Basic Material stocks fell the most.
  • Last week, we removed GN Store Nord (GSN.DK) from our Focus List. Actionable names in the Focus List include Halma (HLMA.GB) and DSV Panalpina (DSV.DK).
  • Watch List: Pets At Home Group (PETS.GB), Jd Sports (JD.GB), Sse (SSE.GB), Snam (SRG.IT), Somfy (SO.FR), Euronext (ENX.FR), Rentokil (RTO.GB), Dermapharm (DMPX.DE).

O’Neil Consumer/Retail Weekly

Consumer Cyclical (XLY): The index breached its 50-DMA on heavy volume with next support at $174. RS line is also moving downwards with an RS Rating is at 59 and A/D Rating remains at E. We recommend that investors wait for the index to retake its 50-DMA before adding to positions.

Consumer Staples (XLP The index has found strong support at its 21-DMA after breaking out of a stage-one consolidation. It has shown good momentum in the last two weeks as investors shift towards safer stocks amid rise in uncertainty due to news of tapering of bond purchase by US.

Estee Lauder

What’s happened? US Focus List constituent Estee reported strong Q4 and FY21
results. Q4 revenue grew 64% y/y, beating estimates by 5%, while adjusted EPS
beat estimates by 38% y/y. We recommend that investors add to positions as
the stock bounced off its 50-DMA on strong volume.

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • The Stoxx 600 gained 142bps last week and is trading at an all-time high. It is in a Confirmed Uptrend with four distribution days.
  • Of the 17 indices we cover, 15 are in a Confirmed Uptrend and two in an Uptrend Under Pressure. We upgraded Germany and the U.K. to a Confirmed Uptrend. The average distribution day count has come down to 4 compared with 5.59 last week.
  • All the sectors closed in positive territory, with Health Care and Transportation being the top gainers. Our rotation chart highlights improving momentum in Health Care, Technology, and Finance sectors.
  • Last week, we added Kering (KER.FR) to our Focus List and removed Zooplus (ZO1X.DE) and Boozt (BOZT.SE). Other Actionable names in the Focus List include Airbus (AIRS.FR), Halma (HLMA.GB), Moncler (MONC.IT), and Trigano (TRI.FR).

IRCTC

What’s happened? IRCTC reported Q1 FY22 results yesterday during market
hours, with better-than-expected revenue and weaker-than-expected net profit.
The stock gained more than 4.5% as the company approved the split of each
share into five. We would like investors to hold positions as the stock is
extended from an ideal buy poi