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Should you Stay in Mid & Small caps? (13th Sep 2023)


1. U.S Markets closed slightly lower yesterday.
2. Right now U.S Futures are slightly lower.
3. Asian markets are mostly lower.
4. Gift Nifty is as flat as it can be.
5. Yesterday the talk of the town were the Mid ,& Small cap stocks.
6. As soon as Markets opened , within 30 minutes small cap index was down 4%.
7. Mid caps were down 3%.
8. Now a days due to Algo trading everything happens so quickly.
9. There was no chance for traders to cut down their Positions.
10. Nifty , BankNifty also turned volatile yesterday due to this small and midcap issue.
11. Though they both ended flat on a closing basis.
12. Mid & smallcap cap stocks have been in a huge bull run since March.
13. I kept warning that many stocks have run up too quick too fast.
14. These are equity markets and not crypto markets.
15. Here the earnings should match the underlying valuations not like crypto which is purely demand and supply.
16. The Valuations would finally come to a Mean no matter where the stocks move over short term.
17. If you have quality stocks with good earnings potential you don't have to worry.
18. If you have junk and you had bought it just because it was going up that too without any research.
19. Then it's time for you to remake your portfolio. 
20. Expecting consolidation to continue today as well 
21. Nifty might trade between 19900 to 20150 today.

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