RBL Bank all time low stock price was at around 100 and it broke conclusively and stock went below it with a gap down with huge volumes. It then went down to 77 levels and recovered. For me the exit on breaching 100 was a logical thing to do because I usually keep a mental stop loss of where I want to exit. I can allow a leeway of a few rupees but in case of RBL it was a conclusive breach of that level.
Currently banking and financials are making a comeback and my guess is most of them will do well if the sector performs. Now which sub sector outperforms from that is anyone’s guess. But I think these smaller private and many public sector banks are quoting at significant discount to book values and that’s where a lot of delta can be generated. Some of the private banks I track like karur, dcb etc have made significant rallies and there can be more.
In the current market scenario we are spoilt for choices in terms of sectoral upmoves. A lot of sectors like auto, auto anc, defence, power, paper, tyres, financials FMCG, some manufacturing companies (where the theory going around is that with EU in dire straits due to high production costs due to high energy and other costs, production can shift to countries like India.) etc. While index may not do much, individual stocks will sizzle and we have to pick and choose. I keep sharing charts on 52 week highs thread whenever I find something interesting and actionable.
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