One of the most valuable parts of our research process in the US is our multi-timeframe analysis of the Dow 30 components. By analyzing 30 of the largest companies in the US markets we can quickly gain an understanding of the index’s underlying trend and which sectors are showing relative strength and which are showing relative weakness.
In India, we perform the same exercise with the Nifty 50. Over the last few months we’ve pointed out the weakness in mid and small-cap stocks, but more recently our analysis of the individual stocks within the Nifty 50 has started to suggest that this weakness may be spreading to large-caps. Within this post I want to point out a few of the names in the Nifty 50 that have us concerned about the performance of the index and may even be offering opportunities on the short side.