I have returned to Delhi after a long holiday and three days of work in Mumbai. In Kolkata, I did not have access to the internet for many days. (Finally, I am acquring a data card.). In Mumbai, I was very busy. So, today, I opened my charting software and had a big surprise.
Paral has fallen from 600 to 295 with a down circuit today. Hanung Toys is at 225, down from 400. Any number of so called momentum stocks are in bad shape. They seem to be undergoing a bear market even while the Nifty is at 6000.
This is NOT a surprise. The rally in many mid caps and small caps was exceptional, probably unjustified. Anyway, every rally will be followed by a correction. Since the up move was parabolic, the down move will be equally sharp. That's the law of the markets. Most of these will become buying opportunities once they begin building a base. This takes time.
I am pleased to write that I will be regularly available on ET Now - from Monday, December 13. Hopefully, almost every day. I hope you get the channel through your cable / digital operator. If not, you may like to get it quickly. Me, Ashwani Gujral, Rajat Bose, Deepak Mohini, C K Narayan, will be together in ET Now, giving a fairly experienced panel to viewers.