In this chart of the Nifty
Financial Services Index vs Nifty 100
ratio, we see a bullish
momentum divergence as prices stabilize above a confluence of support. Prices staying above their recent lows signals outperformance is likely from this sector of the market, at least in the near-term while money flows out of areas that have run a lot like Nifty Pharma
Fast Moving Consumer Goods. Strength in Financial Services will be a tailwind for the Nifty
50 and broader indices given it's the largest sector weighting at ~33%. Our Nifty Pharma
and Bank stock ideas related to this thesis are below in the "related ideas" section.