I think the actions of the regulator are good considering the excessive froth that was building up in micro, small and midcaps space. Each rally in a stock/sector needs some correction off and on so that excesses built up are shed. That is a part and parcel of rallies in stocks. Reason can vary from one company/sector to other.
I don’t try to read too much into reasons for corrections, because I feel if it was not reason X, then it would have been reason Y. If the stock has to correct, it will correct. In some of my own picks, I have seen decent corrections of nearly 30% from their recent tops. The run ups prior to these cuts were very sharp, and hence simply put, they needed for earnings to catch up.
Election has been a monkey on the back of markets. I think till that time we can keep seeing yo-yo kind of markets. A lot of the (up) trending small and midcaps have corrected and some of them are re testing breakout zones. This kind of consolidation can go on for some more time. It’s anyone’s guess.
@Vineetjain111 I don’t track Techno electric anymore.
| Subscribe To Our Free Newsletter |
