Are Realty & Media The Next Rotation Beneficiary?

First, let's start with the Nifty Realty Index vs Nifty 100 ratio, which is attempting to reclaim support near 0.1850-0.0190 as momentum diverges positively. For the last few months, sellers have pushed this ratio to new lows multiple times, but have been unable to maintain those levels.

We're watching this closely to see if there's any sustained follow-through from this failed breakdown or if this is simply another "false start" before sellers really take control again.

Click on chart to enlarge view. 

The Nifty Media Index has improved slightly and is once again testing the downtrend line from its 2019 highs. More frequent tests of this resistance level suggest waning downside momentum and that we may see some stabilization in this ratio.

Whether that develops into anything more meaningful will remain to be seen, but stabilization would be the first step in a longer-term reversal.

Given the strong rotation between sectors we've been seeing, we can't rule out the potential that money will flow into Realty and Media as well. These charts suggest the conditions are in place for that to happen, so we want to keep an eye on them. In the meantime, we'll be doing a deep dive into the individual components to see what opportunities stand out to us.

We'll be discussing this theme and the other ways we're profiting in the current environment in our Monthly Conference Call, Thursday at 7PM IST.

See you there!

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