And that chart is…the Nifty 50 chart overlayed with the Nifty Free Float Smallcap 100 that we discussed on February 1st.
The fact of the matter is the Indian Stock Market is extremely choppy at both the index and individual stock level.
Over the last three months leaders to the upside have failed to hold higher levels, leaders to the downside have failed to hold lower levels, and stocks stuck in a range remain so.
Click on chart to enlarge view.
Rather than continue to frustrate ourselves on both sides of the tape, let’s remain patient like we did last August-October, and wait for the weight of the evidence to point us to the next directional move in the market.
It worked well for us in in Q4 of last year and will work well for us once again…if we let it.
One of the hardest things to do in markets is to raise cash and be patient, but when things aren’t working that’s exactly what we need to be doing.
We’ll be updating all of the chartbooks this weekend, weighing the evidence, and writing about what we’re seeing out there.
For now, the chop continues.
Thanks for reading and let us know if you have any questions!