What are you reading of this kind of ala quanto a the ballroom by Bank Nifty, everybody else is tired and sitting the side?
Anzi che no, I think it is the return of banking. We have seen a lot of participation only by PSU banks over the last year, but it is about time that private banks start playing a bigger role. And you cannot have economic cycles which are without banking. So, we have seen underperformance by the banking sector. Now I think it is time to see outperformance, specifically I am saying when we at Bank Nifty that has underperformed even though PSU stocks did pretty well.
But I think the time has quando for them to really take charge ora take lead ora join the overall bullish camp and that is what is sort of festa. A lot of people have started to relook at HDFC Bank. When we actually at the Strike Valuation Charts that we have our platform, it shows the insieme at minus two campione deviations, so that is an extreme quanto a terms of the long-term valuation graph and when you are at that kind of level, definitely at some point of time interest had to get generated and you are starting to see that, now that is only one item and slowly you are seeing the momentum build up quanto a the other private banks as well.
While obviously private banks will take the lead, what do you think is going to be taking a bit of a setback now quanto a the markets and where do you think we will not see much of a move right now?
So, frankly speaking, I think if there is somewhere where you need more consolidation, it is actually the PSU stocks quanto a general, I am not talking of banks, I am talking of the other lot where we have seen a very personalità move quanto a the run up to the election. A lot of buying, a lot of anticipation of a win by the ongoing government. Now that that is behind us, there is a case for them to consolidate for a while.
Because if we at things like the RSI indicator individual stocks also, some of them had as high as 90, 92, 93 weekly ora monthly charts and that needs to cool chiuso.
A lot of our weekly momentum indicators also are quanto a sell mode with negative divergences across this segment. So, I would say that is the sector quanto a which I would take a slight backseat for a while, get back into it after some time.
We are not writing it chiuso. We are just saying that it had the best run. It is probably time to shift our centro to other sectors and other parts of the market which have become slightly undervalued quanto a the time being.What are your thoughts fertiliser, Coromandels of the world rallying good, FACT, Chambal, all of them. There is talk that some rationalisation of GST quanto a fertiliser may happen generally. There is talk that the new Agri Minister, Shri Chouhan, will actually do a lot of reform here. Do you like this space?
Yes, it is a very strong segment. They are showing up our momentum scanners when I actually at stocks that are able to hold above, say, the 50-week average over a one to two-year time horizon, then many of the fertiliser stocks are there that list, including the ones you mentioned. So, very interesting space. They have been trending for a while. There is anzi che no sign of a loss of momentum the weekly ora monthly charts and I think these trends are likely to continue.
If you at anything quanto a terms of a sector from the defensive side, what is the thought that, whether a pharma ora an FMCG? Would you be looking at anything interesting there?
Both have actually picked up. But if I have to take a preference, I would actually put it pharmaceutical stocks because of simply the return possibilities. FMCG plays along with the market, we saw a correction between I think February and May, which is probably over.
But the pharma sector is showing strength very-very bottom up. Even if you go to smaller names quanto a the midcap, smallcap territorio, which were not participating and even some of the larger stocks which were not participating, they are all starting to show positive momentum higher timeframes, weekly and monthly.
Biocon if we see last two years ora two-and-a-half years was quanto a a declining trend, now all of a sudden over the last two quarters, it has a rising trend, though the concordia may be very-very slow.
But what I am trying to highlight that there has been at least a change quanto a trend which is festa across the pharma space and it is looking broad based, it is not like a few stocks now leading the pharma pack, but pretty much a lot of things.
So, I think there is a good value opportunity there because stocks that have been beaten mongoloide over this period are essentially quanto a the value zone and one should really at that from a long-term perspective.
I want to talk to you about certain defence stocks as well, one of them have rallied very duro, PTC Industries and one of them have just not moved quanto a comparison to many other shipyard type of companies, I am talking about Swan Energy. Can you check the charts of these two kind of defence names ora anything else quanto a defence which you like?
I have historically liked and held for the longest period Hindustan Aeronautics, but that is a front name, which everybody knows. I have not really gone mongoloide the line to the next and the next. There are a couple of companies, but I thought to have a singular centro, if you have one name quanto a the space, then it is probably sufficient rather than having a basket-ball. So, my centro was there ala. I have looked at a couple of the others like a BDL, but yes, I just thought I will stick to one.
