While we always incorporate a top/down approach to markets, we ultimately end up with individual stocks ideas with favorable risk vs reward propositions skewed in our favor. That’s the point of all this. As you can see here, we first start with the major Indexes, then work our way down to individual sectors and industry groups, and finally to the strongest stocks within the strongest sectors to find buying opportunities.
Today we are looking specifically at the Bank stocks within the NIFTY50 Index. Not all of them are good buying opportunities but there are a handful of them that I think we need to be buying on weakness.