We continue to remain bullish on defence sector: Rohit Srivastava

economictimes.indiatimes.com:

«But the overall trend, say even if you get that kind of a consolidation, which means three to five weeks of range-bound markets, a lot of up-down swings, eventually my sense is we break out higher because like I said we are calling this the start of a new bullish phase where you are seeing participation from almost every sector including mid and small caps which is why your breadth is very-very strong so that I think will continue for a period of time. So, for investors, it is a very good phase,» says Rohit Srivastava, Indiacharts.com.Let us start by understanding the market pattern. Nifty's inability to sustain above the 19,500 and 45,000 on the Bank Nifty, is it a sign of weakness? Should we not be compulsive Nifty, Bank Nifty traders right now and focus on stocks because there are no clear trends emerging and only look at a decline, what do you think?Yes and my thoughts essentially are that we have seen a pretty good run-up which makes it fair to expect some kind of consolidation before you start heading higher again.

I do not think it is a trend reversal. It is only a short-term consolidation.

Now in that, what has been happening which we have to be slightly aware of is this market has moved up with a lot of rotation, which means that at some points of time you find certain sectors doing better than others or rotating so you get outperformance in one sector and then when that starts to pull back you get outperformance in another sector. What that ends up doing is that the Nifty itself does not really give you serious pullbacks.

You get a small one-day dip, two-day dip and then it moves higher again. But the individual sectors you might see or stocks you might actually see pullbacks that are slightly steeper