Most of the financials and for that matter a lot of the breakout stocks in overall market are in pause/consolidation mode post the breakouts. For breakouts to suceed, we need strong markets and that’s what is missing. So we have only those stocks moving where the element of positive surprise is overwhelming. In all other places its range bound moves. Wherever results are along expected lines or are decent enough, stocks stay steady and wherever results are below expectations, there is a brutal onslaught and stocks correct sharply.
This type of market behaviour is also a phase in market journey and can go on for more time than we expect. But the good thing about the type of market we have currently is that it gives us a good chance to look at quarterly results, listen to concalls whereever poossible and make informed choices.
NBFCs after their run up are in consolidation mode and might remain so for some more time. But we should not be too hasty to jump the gun and buy breakouts immediately because invariably these days in most breakouts, there is a pullback move and that could be an opportunity that can be used prudently.
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