State of the Market|Reading the Psychology of the market

How are sectors contributing to overall market’s performance. Well, let us have a look at the last one week and last month sectoral performance to get a deeper understanding of where different sectors stand.

Sector Weekly Performance

Here’s some of the observation based on the weekly performance chart..

1. Large cap turnaround: Sensex ended the week up 4.57%. Mid-cap index also closed the week up 3.1%
2. It was the metal sector that delivered the turnaround. The sector was up 8% last week
3. When markets do turnaround - beaten down sectors do well. Real Estate sector moved up 5.22% - not surprising.
4. On turnaround - leadership sectors do not move as much as beaten down sectors. Healthcare was up just 0.71%.
5. Next week - keep an eye on Power sector for follow through trading activity.
6. Most of the other sectors performed in line with market.

Sector Monthly Performance

Here’s some of the observation based on the monthly performance chart..

1. It has been positive month for Sensex and mid-cap. Both are up 4 to 5%
2. The leadership sectors are - IT and Healthcare.
3. Metal stocks have benefited from Global rally in metals
4. One sector that seems to have fallen out of favour on premise of higher competitive intensity - FMCG.
5. Sector to watch going forward - Capital Goods.

Let me know how you found this edition of sectoral views. Please suggest how I can make this notes more useful to all of you.

Disclaimer - The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writer

Also see - Last week Sectoral Performance