We always can see the real picture of market if we cut ourselves from the news and other crap that goes day in and day out. It is easier said than done. What I do every week as a part of discipline is sit w/o any prefixed knowledge and look at the charts and see what they are saying. And may I say I am always surprised. The results are more or less shocking.
If I give a brief analysis of what inside information (from my charts and not a market pundit) I can gather that private banks (yes sir!)look the weekest. Top 3 - Axis, HDFC and ICICI looks set for deeper correction. Can imagine that the cost of deposits are going high and they are more urban centric which consists of clients who can switch if they get a 1% differential in their deposits. NPAs are industry problem hence private banks do not have an isolated problem. Kotak bank though looks resilient. PSU bank charts are also not good which shows that banking as a sector will struggle for some time now.
Metals look equally week. All the top scripts are not able to sustain their recoveries. Again a case of higher costs and lower realisations. Infrastructure scripts like Bhel and L&T looks definite avoid.
If we talk of some decent sectors one of the surprise in coming days can be real estate. The shares are not coming down significantly with the market and are forming a base. The sectors that looks set to be giving returns are cement (all time highs), 2 wheelers (benefit of better mileage and less loan dependence) and selective Autos (M&M looks good for some reason - maybe something good is round the corner). TCS and Wipro from IT packs look good as well.
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