As the Nifty moves up, non-stop, investors and traders should be looking for themes that may outperform.
First, we must understand that the market cannot go up, day after day. It can go up for many days, but not indefinitely. My point is: if you are looking to intiate a trade or an investment, you could wait out this momentum move. There will be a pause, a dip. That's when you enter. But where?
PSU Banks continue to remain a viable trading idea.
A second theme is capital goods. I am looking at companies that are, well, service providers rather than large engineering outfits. There is a long list. There is a difference between this sector and the PSU banks. When I started talking about PSU banks, they were extremely undervalued. They still are, but the gap is narrowing down. Most capital goods providers are not undervalued. Also, they are already in the limelight. Some stocks that I am considering are: Alsthom Projects (APIL), Cummins & Thermax. I have positions in APIL, but for the rest I will wait for a correction. No hurry.