The benchmark Index has seen correction for two consecutive weeks. The biggest gainers were the IT sector followed by pharma and FMCG. We were already bullish on the Pharma and FMCG sectors right since the beginning of the dream run for the market and it has paid off well. The real estate sector was the biggest loser followed by metals and capital goods. The negative divergence is now clearly visible.
Going ahead, the holiday season has started in India and so has the results season. Since there is a clearly visible negative divergence, we might see some correction and consolidation, which will enable short-term oscillators to cool off. IT and pharma sectors look promising once again and calculated longs can be taken in these sectors.
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