The Indian markets ended the week with modest gains, following the upgradation of India's Sovereign ratings by international rating agency Moody's. It looked like the markets were heading the week with losses, after three successive days of drop, however, strong buying momentum on Thursday and Friday ensured that the Sensex and the Nifty ended the week with gains.
How far the markets can rally from here is always difficult to predict. The right mantra would be to book profits on every rally.
Banking shares have seen a stupendous rally in the last few weeks, after the government's recapitalization drive. Most analysts are now factoring that the worst in terms of non performing assets is now behind. However, if asset quality does not improve in the coming days or if there is a delay in capital infusion, we might see a sustained decline in prices from the banking sector.
It is hence advisable to book profits in the stocks from the sector that have rallied a good bit. Here is a stock that could be a good contrarian bet on declines