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. Not a single sector closed in red….it clearly means it was a strong week…rising tide lifts all boat.
2. It was a week of high beta plays be it Real Estate or metal stocks.
3. It was also a week when confidence returned in broader market and mid-caps. The mid-cap index outperformed the index.
4. Oil and Gas sector has been the bottleneck in current bull run. This week was no different.
5. One sector where there was clear loss of momentum: Frontline Tech. This week, the index was up just 1%

Sector Monthly Performance

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

1. Roaring comeback by bulls: There is not a single sector that delivered -ve return over last one month.
2. Despite the strength, there has been tentativeness and more investors/traders chose to remain on sidelines than in market.
3. The leadership is with Metals, Autos and Banks. They remain - Buy on declines sector
4. Oil and Gas sector - the bottleneck sector which is going nowhere.
5. Capital Goods sector has been surprise mover in last one month.

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