Challenging 3rd Quarterly reports.

Apart from NIIT which gave a triple digit growth in EPS of 575.35%, all the other results that came out in the last few days were subdued. With many stocks registering triple digit and 4 digit negative EPS growth rates like Polaris, Infomedia, Jet Airways, Hindustan Construction etc.,

NIIT, though has the best EPS growth, its sales growth was negative at -7.46% while its profit was at 37.37% increase. This is in one way encouraging that the company has managed to give a robust bottom line growth while the top line actually negative, but not encouraging.

Fund exposure in the stock has seen a steady rise of above 50% when compared to November data, this is encouraging too. Price of the stock is in the bearish trend on the weekly with a good divergence on the histogram forming a resistance at 46.70. On the Daily charts the stock has made a good bullish rally from 37.20, there are possibilities for some more gains in the stock on the daily before any weakness sets in.

WIPRO reporting a negative EPS growth of 13% was a setback to the Technology stocks today, but otherwise too, Technology sector is not the top sector of our markets today. Leadership positions in many industries are shifting positions to give way for smaller stocks which are mostly not so common names for the investor.

So, if you have to trade the best stocks of the industry definitely the prior leaders are not the ones to be bought for capital growth at the moment.