The bulls are driving the indian equity markets from strength to strength. However, mid cap and small cap stocks are failing to outperform the headline indices.

Thankfully, we are not there yet due to a lot of skepticism around. However, Nifty 50 index charts continue to be positive. The charts of top heavyweights are in a good shape whereas, for some mid-caps and small-caps, they are distorted. One needs to follow due diligence before committing to stocks from this space. 

BSE IT Index, BSE Telecom Index, BSE IPO Index, BSE Capital Goods Index and BSE Energy Index were seen outperofmring BSE Sensex in the this week while BSE Realty Index , BSE Healthcare Index and BSE smallCap Index were seen trading with losses this week. 

The trend in price is assumed to be strong if the price rise is supported with higher volume. 

We could observe that at least 63 stocks belonging to the healthcare sector tumbled by more than 5 percent this week. 

The BSE FMCG Index has shown some underperformance in the past week and has been underperforming in  2021 and in the past year.

BSE IT index was the top sectoral gainer this week along with BSE Telecom and BSE IPO index.

Several Chemical sector-related stocks were seen trending this week with the top gainers in the sector, up by more than 33 percent in one week alone. 

One may closely look at the stocks that have fallen sharply or by more than 20 percent from recent highs and study the technicals to understand whether the stocks have entered a bear phase. On the positive side, long-term investors may find stocks that have fallen sharply attractive and hunt for bargains.  

If we check the data for the IT major stocks such as Wipro, Infosys, Tech Mahindra and TCS we find that returns generated via stock SIP is much better than the returns generated by passive investing i.e by investing in Sensex or Nifty or even NIFTY IT index.