Beaten-down stocks playing catch up: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker of miteshthacker.com shares his views on the market trend.

ET Now: Let us assume for a moment that banks would continue to wobble or remain sideways. In such a situation, can broader markets outperform? In a weak session like this, you would have anticipated stocks from sectors such as infrastructure and real estate to plummet more. That would have been the norm maybe two or three months back. But, in the Friday’s session, it was not.

Mitesh Thacker: Friday’s price movement has been quite contrasting. The ADAG group stocks, which have been underperforming, have done extremely well today.

They ended higher in a session which was very volatile. It looks like some kind of rotation is happening, and therefore, I still believe that Friday's entire correction will eventually turn out as some kind of consolidation.

It might be slightly early to figure out what the range would be.

We will have to see where intraday supports come in in the next one-two days when selling re-emerges at higher levels. Overall, it looks like some kind of sectoral rotation happening with underperforming sectors trying to play catch-up.

Also, it appears that we are seeing profit bookings in stocks which have done extremely well. I would not be really worried about broader indices. They are going through their normal pullback to their averages. But, this could be choppy in next few days as we head into the February month.