Asset, Sector and Stock Selection
by PRASHANT SHAH -
Asset class analysis Let us consider a scenario to understand the role of overall market mood or sentiment. Suppose say you are not in a good mood or feeling low and depressed. If someone were to ask you to participate in a sport or a game, what will be your response? The typical response will ... Read more
Sector analysis
by PRASHANT SHAH -
Selection of Denominator We have discussed that the trend of the denominator is an important aspect of relative strength analysis. For the large-cap stocks, the Nifty 50 index would be a logical choice to be used as the denominator or as the benchmark. Even for derivative traders, the Nifty 50 index would be the logical ... Read more
RS Switch
by PRASHANT SHAH -
If Nifty is outperforming, we should have more allocation in equities. With the breakout in stocks, the sectors and groups outperforming in Nifty are more attractive from an investment perspective. The performance of bullish trades will be better than bearish trades in such a scenario. If other asset classes such as Gold or bonds are ... Read more
