Indian Markets: A Perspective as on Aug 13th, 2021

While Nifty has broken out and Bank Nifty is trading above important levels and IT continue to shine, the Equal Weight Index has broken down along with Nifty Mid Cap, Nifty Small Cap and broader market Nifty 500. While there is a silver lining in them taking support at important moving average, given they have broken down on relative performance chart, all it does is leave me confused? Are we entering a phase where Nifty and Bank Nifty may shine on back of strong performance in index heavy weight HRITIK stocks (HDFC twins, Reliance, Infosys and TCS, Kotak). Only time will tell. Certain other pockets which continue to have their own tailwinds like metals, real estate and chemicals (which does not form part of any major index) may also continue to do well