Skill India looks like a new theme for the market and there seems to be tremendous interest in all education stocks irrespective of trend and fundamentals.
Here are some of the stock charts
1. NIIT: Leading the pack
As you can see in the chart above: NIIT seems to be in solid uptrend since June 2015. The stock is the leader of the pack and strong buy on declines near major moving average.
2. Aptech: Catch up Game
Aptech was in deep downtrend but today has made a large candle move indicating a turnaround above downsloping trendline. That's what sectoral move does. It lifts all boats even the leaking ones.
3. MT Educare: Solid Breakout and Stock to keep an eye on in 2016
MT Educare stock has broken out on weekly chart with large candle. This generally leads to strong move in weeks and months to come. The stock is now buy on declines.
4. Educomp: Even dead and buried stock made a move
Educomp has been down and out stock for years now. But even this stock is showing signs of revival because of sectoral surge
5. Navneet Education: Slow and Steady Breakout
Navneet Education broke out in 2014 on weekly chart but has not made much progress. It spent the whole 2015 consolidating. Does this mean good days ahead for stock in 2016?
6. Zee Learn = Sharp Surge
Zee Learn stock made a huge upmove in December. The stock seems to be now buy on declines obviously with adequate stop loss.
What does this all mean?
Market always develops fascination with a theme and then the stocks in that sector rally like crazy. Are we about to witness such thing in Education sector because of Modi Skill India initiative. We don't know at this time but early signs are encouraging. It's a good sector to keep a close eye on.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication, you agree to make no trade relying in whole or in part on the comments of the writers