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Today despite the fact that the nifty heavyweights are trading in green territory, nifty is still trading just moving close to the red territory. This along with a negative market breadth is clearly indicating that finally a phase of profit booking has come. There is a high probability that this corrective phase may continue further. Because the valuation differential in large and mid cap had increased very sharply, there is more probability of a mean revision trade taking place. It might be better for have a bias toward looking at large cap when investing fresh money.

After a relentless rally for the last ten months, the mid-caps segment of the market is witnessing some profit booking/ correction/ rational shifting/ consolidation. Why slash ? Because, the way stocks are moving, there is no one trend in mid-cap space. Some are coming down just because they have moved very fast, some of the stocks where are literally hardly any fundamental, like the ones where the companies are under IBC and still quoting at half a billion dollars market cap. So there are many sub segments which are getting formed in mid-cap space and given the mix of head and tailwinds, this...

It is probably times like these, where after a long phase of trending market, some volatility and correction is coming to the street that one needs some set of rules. The reason, in the first phase of correction, the recency bias that every dip is buying opportunity will play out. The tendency to do averaging will be high. It is this set of rules which will be able to help better navigate the market when it's volatile with a bearish bias. This might appear conservative to some as it limits the scope but being conservative is a way of bringing in discipline, especially when it comes to trading....

While today the movement of the Nifty and Sense will make a number of people think that a correction is taking place in the market. The fact is that the market has been correcting for some time. If one looks at the trend in the advance decline ratio, on the day market is shedding weight, then the advance decline is very negative and even on the day nifty is moving upward, the improvement in the advance decline ratio is not that high. At this point of time, one cannot rule out more profit booking which can bring more damage to stock prices in the mid-cap segment. In such times, if one is taking...

In the last few days, there have been reports that cement prices have come down. This led to a sharp correction in the cement stocks. If one looks at the trend in cement prices, they have stayed first for the last eight months. There are a couple of points that one should look at before deciding to buy or sell both from the perspective of investing or even trading in cement space. The reason, a small dip in cement prices does not mean that the larger picture of the cement sector of having multiple tailwinds like increased demand due to focus on infrastructure and also better quality of balance...