There is a saying: A rising tide will lift all boats even the one with the big hole.
What is a rising tide?
Here's Bank Nifty Chart this year:
Here's how Axis Bank stock (A leaking boat), part of Bank Nifty behaved this year till few weeks back:
The rising tide helped Axis Bank stock rise and trade more near resistance than support.
I did cover the stock on July 19, 2017, as a stock that's locked below the resistance point. But then rising tide worked more in favor of Axis Bank stock and it broke out just a day after I wrote the post. But there was nothing to get excited about - See the reaction to the breakout:
Here's what has happened to that breakout:
Axis Bank was clearly a case of leaking boat and it's never a fun to be on such a boat even if rising tide came to help it. Such boats eventually do sink or survive if they fix the hole but they don't rise for sure on a sustained basis.
Here's how the real breakout plays out:
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