Sarvesh Kondejkar

Trends Observed - Sectors continuing momentum in the past 6 weeks are - Banking, Finance Cement and Construction Commercial Services and Supplies Sectors where momentum is seen to increase Automobile & Auto Components General Industries Software & Services Textile & Apparels Sectors where momentum is slowing down  Metals & Minings Chemical  FMCG Pharmaceutical & Biotechnology Do follow, for more updates!!!

Through the following image, we can see different trends seen in various sectors over the past 4-5 weeks. The number represents the number of stocks in the particular sector outperforming the Nifty500 Index for a quarter. Analyzing this helps us understand where institutional money is flowing currently and which sector is acting as a laggard. A rising number of stocks represent, more stocks from the same sector outperforming the index, showcasing the outperformance of that sector.  In a sideways market, when the index can go around nowhere for 2 years, this can support bringing that extra alpha to the portfolio. **Not an investment advice Do follow, for more updates!!!

Trends Observed - Sectors continuing momentum in the past 6 weeks are - Automobile, Auto Banking, Finance General Industries Textiles and Aparrels Sectors where momentum is seen to increase - Cement & Construction Consumer Durables Metal & Mining Sectors where momentum is slowing down - Chemicals FMCG Hotels Sector In Discussion - Consumer durables -  It has been one of the beaten sectors for the past 2 years, as a question of discretionary spending came to light. In the near future, this is a sector that can show outperformance as earnings start regaining ground and inflationary pressures ease. This sector specifically in India caters majority to the local demand hence a global slowdown can have an impact on the supply side but not on the demand side.  PLIs, Private player initiatives, cheap labor, and favorable policies can be the trigger for the next rally in this sector. **Not a recommendation - just data-driven insights.  Do follow, for more updates!!!

I keep TA simple, my motive is not to predict the exact tops and bottoms but to understand the trend and take decisions accordingly. Nifty 50 - It is retesting the trendline after a breakout last month. Interesting to see where nifty will head now. Breaking down into the trendline will be a cautious sign. Bulk Buying at this stage is risky. If it is consolidating here for 2-3 weeks in a range, one can look at buying the index. Nifty Auto - If seen from a broader perspective, we can see a 3-year-long cup and handle breakout in the index. Potential targets for Nifty Auto can be calculated accordingly. In the short term, there can be inflationary and supply-side issues which can be a pain point, but the long-term trend in this sector is looking like a cyclical uptick. Nifty Bank - As I was stating on my Twitter account for the past few months, this was a sector that was deeply undervalued, and if we expect the economy to grow, banks have to grow as the flow of money is affected otherwi...

Nifty Indices Technical Analysis Update  15/01/2023 Do follow, for more updates!!!

** Indices TA Update  ** Relative Returns Update  Do follow, for more updates!!!

Relative returns also referred to as 'Relative Strength'    is a calculation of the price trend of a stock or a financial instrument  in comparison to another instrument, stock, or industry. It shall be determined by taking the price of one commodity and dividing it by another.  Relative strength is a strategy used for determining value stocks  and is used in momentum investing  as well. It involves investing in stocks that have done well, in relation to their index or benchmark. To explain in simple terms, helps us identify instruments that are giving more returns relative to a benchmark or another instrument. Framework used - Benchmark - Nifty500 Companies Collection - Listed Companies in India The time period for calculation - Quarterly  Using this framework, we can now analyze which companies in India are outperforming the Nifty500 index on a quarterly period. Further, I counted the number of stocks from each sector and compared it every weekend le...

**Relative Returns Screen Analysis -  ( Introduction ) 15/01/2023 22/01/2023  Monthly Update