When making plans, think big.
When making progress, think small.”
– James Clear
Global Markets
YTD Performance
Stay-on-the-sideline mode ON !
Global markets did not hold the support and are on a decline lead by Japan after increase in the interest rates there.
More downside to come with this weakness. Indian market declined the least and still looks strong though correcting.
Market Breadth
New Highs / New Lows
Net Highs are declining as global markets put pressure on the Indian markets. Market clearly showing weakness and maybe more to come in the next week.
As long as we are above the zero line its all good in the hood.
Nifty 500
The Market
We finally get the correction which was long overdue and was giving signals with defensive sectors rallying into new highs.
We now wait for where the market gets support as this clearly looks like we are re-basing after this gap down.
Sitting on the fence, getting defensive and managing risk is of prime important when market pulls back !
Nifty Indices
YTD Performance
We compare YTD-RS vs 3M-RS to check sector rotation in market.
Oil & Gas is the only common sector while we still see defensive sectors Pharma and Fcmg on the move.
Leaders continue to be PSE, Auto alongwith Oil & Gas.
Stay away from underperforming sectors, Legendary traders follow this one important strategy of always staying in Alpha sectors and Alpha stocks.
The Alpha
Sectors and Stocks
Keeping a watch on where the leadership is in the sector helps to get the True Market Leader / Model Book Stock / Alpha Stock.
| SECTOR NAME | LEADING STOCK |
| Adani Group | Adaniports |
| Auto | Amaraja |
| Birla Group | Abfrl |
| Cement | Indiacem |
| Chemicals | Solarinds |
| Commodities | Vedl |
| Consumer Durables | Ifbind |
| Defence | Cochinship |
| Electric Equipment | Get_D |
| Electronic Mfg | Pgel |
| Energy | KPIGreen |
| EV and Adv Auto | Are_m |
| Fertilizer | Dhanuka |
| Finance | Shriramfin |
| Fmcg | Trent |
| Hotels | Itdc |
| Infra | Industower |
| IT | OFSS |
| Logistics | Aegislog |
| Mahindra Group | M&M |
| Media | PFocus |
| Metals | Hindzinc |
| Oil & Gas | Oil |
| Pharma | Wockpharma |
| PSE | Hal |
| PSUBanks | Psb |
| PvtBanks | Federalbnk |
| Railway | Rvnl |
| Realty | Purva |
| Reits | Biret |
| Roads | Ashoka |
| Shipping | Cochinship |
| Solar | Ina |
| Sugar | Bajajhind |
| Tata Group | Asal |
| Telecom | Mtnl |
| Textile | Raymond |
Stocks to focus
Trade / Invest
While sitting on the fence would be ideal, i would strictly avoid leverage trading and instead focus on investing in cash stocks.
| TRADE | INVEST |
| Muthootfin | Lloydsmetal |
| Naukri | Kalyanjil |
| Shriramfin | Rvnl |
| Tatapower | Lici |
| Tvsmotor | Whirlpool |
Your Job is to find ONE stock and handle it well.
Leave a Reply