Does a market always have best sell and best buy stocks? If buy and sell are replaced by hold and reduce, there are always best buys and best sells at all times. Our ranking system is a simple way to find out top rankers i.e. top performers. And considering performance is cyclical, Nifty is still moving around 6,000, Nifty VIX is consolidating around 20 and is at a cycle low, it would be interesting to rank the market components. This is what we did. We generated top rankers.

After we generated the top performers, we looked at the Rieki oscillator and start doing a visual check for non confirmations, negative crossovers, and price structures. Siemens, Ashok Leyland, Axis Bank and Mundra Port had clear non confirmations on Rieki. ITC, Union Bank and Adani Exports were the other potential minor negative cases.

Just like top rankers, there are worst performers. And if one can identify best stocks to buy just like the top ones to sell, we are not very far from pair strategies. Buy the worst performers and sell the top rankers. Buying (Holding) and selling (reducing) in strength is always a hard task. We continue to look at October to give volatile sparks soon enough. We repeat, a weekly column could be a futures strategy, but it's preferable to look at sell as reduce, and in case you really want to go for a short, look at minor prices confirmations before going in and don't forget the stops.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research