Nifty made a Turnaround to Start a Fresh Rally!

We have seen cautious approach by the foreign institutional investors just before the State election results which we have noted in our earlier post.But on Stable Win by the Ruling Party BJP in 4 out of 5 States that went for election the results have been a clear mandate which welcomed the FIIs to become more confident of much wanted reforms and belief in growth story and they are now loading up their kittys with stocks to fuel a fresh rally at this juncture when the indexes are hitting All time highs.

This is evident from the Fund flows in the Derivatives and Cash Segment just after the election where they have booked out the loss in bearish positions and Loaded the Bullish positions of a significant portion in Index Futures and Cash segment which gave rise to a bullish Breakout in the Index and stocks.

So It is clear from these actions that they believe in a further Rally in the Indian Markets , So it is clear time to add some stocks to your portfolios to get advantage of the rally that is to come.

The sectors which are to look out for are Pharma in the first place followed by the Energy to make some meaningful gains as the rate sensitives have already been rallying for a long time since Feb 2016.

In the Banking space there are certain opportunities to look for in Beaten down PSU stocks which haven't participated much in the rally that we have seen and in the Private Banking space Axis Bank is a good opportunity at current valuations.

The IT Space is witnessing a weakness even in the wake of the strength in the markets which suggests to put a limited exposure in this space where concerns exist on Trump becoming the President.

Disclaimer: The views shared here are purely for educational Purpose and are not in any manner an advice to BUY or SELL any specific stock or Index Accordingly you are requested to consult an SEBI Registered Financial Advisor before taking any Investment Decisions