Runaway Boom Parameters Prevail - Market Internals with Biju Samuel - Quantitative & Alternate Strategy by Elara Capital
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Flash Crash Update
Our weekly Compendium
Our Chart of the Day (COD) weekly compendium offers insight into the macro signals, global trends, market perspectives, sector calls and actionable ideas highlighted during the week.
As IT Fires On All Cylinders, Revisiting HCL Tech
We have been actively tracking new leadership dynamics in HCL Technologies ever since the relative breakout with the Nifty IT Index from an eight-year base structure. With all stars aligned, the stock opens the next big target of 2100, which could be a 12-18 months target.
Runaway Boom Parameters Prevail
We have cited stock return metrics earlier that indicate upward of 35% returns for many stocks in this faster returns’ regime. One upcoming Nifty target is near 23600 based on the channel breakout.
Further positive surprise in Hero MotoCorp
The latest outperformance in Hero MotoCorp is from a point of extreme underperformance in the sector. The new cycle of outperformance is accompanied by a picture of under-ownership that augurs well for bigger Alpha. With leaders like TVS Motors having covered considerable runway, a sustainable innings of the laggards seems to be underway. The first green shoots for a tactical outperformance of Hero MotoCorp over TVS Motors have emerged.
IT Aims 25% Higher Outperformance Than Banks
We had covered the big fight between two heavyweight sectors -- Banks and IT -- with strong expectations of IT winning the battle with prospects of a 35% outperformance over Banks. With the latest banking crash, the IT relative ratio with Banks has broken out of long-term resistance, targeting another 25% outperformance.
Flash Crash Update
We have highlighted a key Nifty level based on the average since 4th December 2023. Latest survival was anchored around that key level of 21400. The seeds of turbulence might catalyze changes in the character of the market rally. In this case, increased apathy toward heavyweight banks & financials (after a reflex) and renewed enthusiasm for its antithesis. One offshoot can be broadening of flows. fueling more conviction in other winning sectors and themes.
We do note writings in the subsequent slides are as per previously published COD during the week.
Above views are of the author and not of the website kindly read disclaimer
