In share market, identifying a good short term trend before it reaches to its end is a very difficult task. But if you keep analysing the market closely and deeply, you would be able to discover such trend quickly.
After last few trading session, I have also discovered some interesting trend in share market which is necessary to disclose in front of my Blog Readers.
This trend is neither related to Quality share nor Undervalued shares. This trend is related to a sectoral trend!
You all know that Science and Technology in India is one of the fastest Growing Sector. In technology itself, there are many categorized fields like Telecom, IT, Electronic Equipment etc which are generating number of opportunities to various types of interested parties.
Cable Industry, which is also related to Technology is that sector where I think the current trend is far different from the current movement in overall market. Take a look at the past one month chart of various Cable stocks like Universal Cables, Birla Cables, KEI Industries etc. You will find that top gainers from this sector has delivered more than 70 percent returns in last one month which is far better from many other top Gainers of last one month.
In Cable Sector, most of the stocks have low market capital. But the liquidity in this sector is great enough which helps in to reflect only real Buying and Selling in shares.
However, if you take a look at the past 2- 5 year performance also of the cable stocks, you will again find that they are among the top most performers of share market.
Behind such rally of cable stocks in last few years, there is a simple reason. In Telecom, the need of wire/cable is in heavy amount. In IT, the need of wire/cable is again in a heavy amount.
Infact, the need/demand of cables in whole India is in huge amount and this sector is related to a path of unlimited opportunities where every cable company has large market of consumers ranging from individuals to LargeCap companies.
In 2017, Universal Cable was my top suggestion for long-term holding. That time also, I have discussed the same thing that the demand of Cables/wires in India is not limited to any size. Instead, it is linked to the every sector of Indian Economy.
Read that advice/suggestion here which stocks have potential to give multibagger returns in long term?
In your home alone, can you imagine how different electrical/electronic equipments would be able to work without any wire in it..
Overall, I would like to say that holding a Cable Stock in your portfolio was my preferred bet for long-term and will continue to be one of my favourite bet for long-term until Wireless Technology not seems as a danger for Cable stocks.
For Short-term, traders and investors have good option to use current momentum in Cable Stocks. At current levels, one can try buying those cable stocks which have comparatively shown modest rally as compare to other cable stocks. KEI Industry is one such stock which is available at very lower levels from its 52week high.
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