I'm Bullish on these Stocks Now

Hello subscribers. Welcome to the Fast Profits Daily. Myself, Brijesh Bhatia.

Nifty has been on a roll since July, I would say, though August in the end we saw a mild negative momentum in last couple of weeks. But yes, the index is holding on to the higher levels very, very strongly.

What I'm highlighting here is the midcaps stocks, which are becoming very, very bullish since July and I have been a video on midcap index where I highlighted that midcap index could continue to outperform in 2022, and it may prolong in to 2023 as well.

Dear Reader: If You Invest in Midcap Stocks, this is for You

In this video, I'll discussing one sector where definitely you should look at from the midcap space, and that sector is footwear stocks.

Most of the footwear stocks are from the midcap basket, and I guess only one we have in the futures Bata and rest of them are into the midcap space. So I have created an equal weighted footwear index.

 

So if you look at this chart on your screen, this is the equal weighted footwear index, where the minimum marketcap Rs 1,000 cr has been included the stocks are included into building this equal weighted footwear index.

So stocks are Bata, Relaxo, Mirza, Metro, and Campus. So these are the five stocks which equally, 20% weightage was given and I have created this index.

So if it's look at the chart on your screen over here, when the market reversed sharply in the July, the previous high was taken out and we saw a fast and furious rally in the footwear stocks. So if you look at the line over here, the green line, it's the high when the market started to correct in the May and June.

But look at the reversal which happened when we broke out in the start of the August after a consolidation zone. The rally was very, very fast and furious. Now back when markets have been slightly correcting right from 17,992 to now 17,100 levels, this index has seen a slight dip into the momentum.

 

If I look at the second chart over here on your screen, I have just highlighted the rising trend line, the blue line if you look at a screen. It indicates that yes, the support is very, very strong, and one should definitely look for the buying on dips. Footwear stocks seems to be very, very exciting.

 

Well look at the third chart on your screen over here. I have drawn a curve. So generally, what happens when you see are rounding structure happening into the bottoming phase before the break out is the re-test is also into the rounding structure.

So if you look at the rounding phase, below the green line, where the bottom was made, we are in I think a slight rounding phase into the re-test as well. So generally, when these rounding breakouts and rounding re-tests happen, they tend to give very, very convincing rally. I'm not looking for a day or two, I am looking for a few weeks or a few months where I believe that the footwear index is very much ready to see the higher level

Look at the volumes as well. In the last few weeks, the volumes have been very, very strong on the footwear stocks. So you can keep a watch on these footwear stocks. I believe the bulls are in control of the footwear stock trend, and you should definitely look at it as an investment, a short-term investment I would say, from six months to one year. I believe that footwear stocks are very, very much ready to head higher.

So as an investment into the midcap space, where midcaps are buzzing, footwear is the sector I believe can give you healthy returns as soon as markets see an upward momentum to 18,000-18,500 on the Nifty.

So keep a watch on these footwear stocks and stay invested.

Signing off, Brijesh Bhatia.