First of all it is good to be back after a short break.
Well, not any dramatic change in the structure of nifty and other related stocks. We have reached an important time cycle as the first or second week of January is famous for placing major tops as far as indices are concerned.The volatility index is trading close to its lowest levels and it is time to be cautious and would be wise to take off some money from those stocks which have positive correlation with nifty. There could be a short term rally in banking and housing finance stocks ahead of the RBI policy but bet on those with lower volumes. As the index is close to our medium term target of 6150 it is wise not to enter into fresh longs but one can still hold on to some specific names.All the major banking names and stocks like L&T are in a middle of the rally and no signs of reversals are seen in these names but bet on those names which haven't performed till now. I would be positive on stocks like HUL, HCL tech , ABAN etc. These stocks were under performers when the whole market was rallying and it is time to shift the focus to these ones than the famous names. In a bull market an intelligent trader would make use of the major part of the rally and use the corrections to fill the portfolio with under performers. Logically a bull market would last more than a bear market and we will have some more time to accumulate decent stocks but if you got stocks close to bottoms don't leave those.
Well, not any dramatic change in the structure of nifty and other related stocks. We have reached an important time cycle as the first or second week of January is famous for placing major tops as far as indices are concerned.The volatility index is trading close to its lowest levels and it is time to be cautious and would be wise to take off some money from those stocks which have positive correlation with nifty. There could be a short term rally in banking and housing finance stocks ahead of the RBI policy but bet on those with lower volumes. As the index is close to our medium term target of 6150 it is wise not to enter into fresh longs but one can still hold on to some specific names.All the major banking names and stocks like L&T are in a middle of the rally and no signs of reversals are seen in these names but bet on those names which haven't performed till now. I would be positive on stocks like HUL, HCL tech , ABAN etc. These stocks were under performers when the whole market was rallying and it is time to shift the focus to these ones than the famous names. In a bull market an intelligent trader would make use of the major part of the rally and use the corrections to fill the portfolio with under performers. Logically a bull market would last more than a bear market and we will have some more time to accumulate decent stocks but if you got stocks close to bottoms don't leave those.
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