Nifty moved closer to the immediate target zone of 5850 but as said in the previous posts i am not chasing any banking stocks as of now for a trading opportunity.As a trader i might have missed some opportunity in catching some 2-3% move in banking biggies but there is no need to chase this market.It would consolidate , there would be profit booking sessions and get in when the opportunity arises.I have been upbeat on the banking space and the mentioned names in the list were SBI, Canara Bank, Bank of India and YES bank (12,13 -Sep blog). Readers should understand that i am saying to book profit from a traders perspective. As an investor one should stay long in banking space with a one year horizon.From a trading perspective Mphasis gave a negative return and i have to accept that i was wrong in analysing that stock. With a consolidation close to 5630 - 50 levels the index is expected to touch 6150 by the year end and any dip could be used to buy quality stocks like TATA steel and mid cap IT stocks. Volatility data is showing some profit booking happening close to 5840 and these might be warning signals for a consolidation phase. If we look at the sector wise performance the rally was fueled mainly by banks and no other sector has contributed like banking space and thus it would be a positive factor for a good positive move.In the next phase when ever there is an upmove in base metals in the commodity space we could see a decent rally in metal stocks like TATA steel , Sterlite and JSW steel.Thus no need to chase the market and utilize every opportunity in the consolidation phase to be on the long side.
