This blog has been penned by Dr Hitesh Patel. Hitesh & Abhishek work together for Intelsense Hitpicks Advisory.
Greetings to all our friends and hope everyone is keeping
good health in these trying times.
The markets continue in the strong rallying mode we have been
witnessing for the past many months. Many
of us have seen such strong rallies on few occasions during our investing
lives. And that too in the face of
unbelievable ground realities. This rally
now seems to have crossed the wall of worry and minor deterrents like minor
negative news flows do not affect this rally.
Most investors continue to have the question of how long this
rally is going to last. Well, it’s
difficult to predict a market top or a bottom. But it’s quite possible to know the trend of the market and we can
confidently say that the current trend of the market across most time frames.
This rally remains a broad-based rally with some hints of
sector rotation. A sector or a few sectors
continue to outperform while others that have run-up in the past undergo
consolidation. This is characteristic of a strong bull market rally.
Our feel regarding the sectors likely to gain in the short to
medium term largely revolves around the "Unlock theme". Sectors that have been badly affected by
Covid will now endeavour to get out of the woods and might attract investor
attention. Sectors like hospitality,
leisure, tours and travels, retailers etc. should be kept in focus.
Another segment of the market that seems interesting at the current juncture is the banking and NBFC space. Though NPA worries remain, the uncertainty
related to NPA classification and Supreme Court judgment on that aspect as well
as on other things like interest on interest etc now seems to be out of the
way.
The perennial favourite and structural stories will continue
to do well. Sectors like pharma, agrochem,
speciality chemicals, etc. should continue to show steady moves.
Some long-neglected sectors like power, real estate, PSU, infrastructure
etc seem to be showing good relative strength in the market. These sectors too look interesting.
How long this rally will last is not a question we worry
about too much mainly because nobody including us has any correct answer to
this question. So as long as the trend
remains up we will continue to maintain our bullish stance. Our strategy at HITPICKS will continue to
focus on fundamentally good companies with strong technical setups. We will continue to maintain our stance of
keeping 8-10 open positions at any given point of time so that subscribers can
allocate a decent percentage of their technofunda portfolios to these names.
Kindly get back to us regarding any feedback you want to
share with us.
Regards,
Dr Hitesh Patel
Thank you. This is helpful.
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