Learning Article : How to Leverage Sector Rotation to Outperform the Market

Amid the rabble of traders fighting to chase stocks, people tend to miss the bigger picture. Everybody is in this game to outperform the market. Looking for individual leaders is important, but in order to do that efficiently one must be ahead of the sector rotation curve to spot where the cluster of leaders is being generated.

Just like overall business cycles, sectors also have their trends linked to economic rationale. For example, overall growth outlook of any economy first impacts the Banking and Finance sector, followed by Infrastructure. The Metals and Mining sectors follow the commodity cycle, while the FMCG sector picks up on consumer confidence. While there is almost always an economic rationale behind these trends, there is an objective and efficient way to spot sector rotations. Continue reading “Learning Article : How to Leverage Sector Rotation to Outperform the Market”

Special Article : Bull and Bear Markets and How to Tackle Them

We all are aware of the basic terminology about bull market, bear market, and correction. In simple terms, a “bull market” is when the market moves higher and a “bear market” is when the market moves lower. However, one needs to understand that a new follow-through day and short-term uptrend do not necessarily signal a bull market. Similarly, short-term downtrend does not necessarily indicate a new bear market. Continue reading “Special Article : Bull and Bear Markets and How to Tackle Them”

Market Condition and How to Approach the Markets this Week

Current Market Status

The month of December started with a weak performance in the market. The Nifty and the Sensex lost 1.7% and 1.4%, respectively, during the week. Except Nifty IT (+0.2%), all other indices gave negative returns for the week. Nifty Pharma (-6.4%) and Auto (-4.3%) were the worst performers. The Nifty Midcap and Smallcap have also faced the wrath of selling pressure as they both lost 2.6% during the week.

According to MarketSmith India’s methodology, at the end of the week, Nifty Bank, Financial Services, IT, Energy, FMCG, and Auto are in a Confirmed Uptrend. Metal is in a Downtrend whereas Realty and Pharma are in a Rally Attempt. The YTD returns for the Nifty and the Sensex were 1.5% and 4.7%, respectively. Continue reading “Market Condition and How to Approach the Markets this Week”