Out of 23 stocks from agri and fertiliser space, 11 have rallied 10-100% in 2020 so far. Agriculture remains a strong play, but experts feel agro-chemical stocks may be running out of steam.
Though the momentum looks on the side of the bulls, traders should remain neutral as risk-reward ratios may not be in their favour, say experts.
A beginning of a multi-year bull market from the panic lows of March can be ruled out. Traders should remain alert without developing FOMO as fall can be a minimum of 10 percent as happened in the past.
The broader markets underperformed while the benchmark indices put up a smart show by rallying over a percent each. The Sensex rallied over 400 points and the Nifty closed above 10,800 levels
After rallying nearly 4 percent, the indecisive candle on July 7 gave traders an indication that the market rally may be losing momentum
Strong companies will keep getting stronger and will be able to gain market share as well as capital.
In the short to medium term sectors/stocks which may be lesser impacted by the COVID situation and maybe the first ones to bounce-back will outperform.
Most of the stocks lapped up by fund managers are because of attractive valuations. Looking at stocks where mutual funds have increased stake could be a good starting point
Should one see a more sustainable market rally into 2021 and beyond, it will once again center on financials, but broaden out to include even industrial and infrastructure.
As many as 31 companies in the S&P BSE 500 index have given negative return since March 24, including names like Indiabulls Integrated Services and Shriram City
Silver, in dollar terms, has seen a strong move but does it have the ability to continue the streak? Will gold, which has not moved much, catch up?
The S&P BSE Sensex hit an intraday low of 25,638 while the Nifty50 made a swing low of 7,511 on March 24, and since then both the benchmark indices have rallied more than 30%.
An individual investor one may consider 15-20 percent of investment into the PSU’s, PSU’s are high dividend-paying companies, they have been underperforming the benchmark indices for quite some time.