MERA KUBER | EQUITY RESEARCH LETTER
Week of 05 Jan 2026
FreeExecutive Snapshot
Market internals are improving, leadership is concentrated in quality cyclicals, and execution edge now comes from disciplined entries with predefined downside.
Portfolio stance: stay invested, add selectively, and protect capital with uncompromising stop-loss discipline.
Breadth
68/100
Top Leaders
FIN + IND
Playbook
Scale In
RegimeImproving market breadth, still selective.
LeadershipFinancials and Industrials.
ExecutionStagger entries with strict stop losses.
Border Market Health
Internal market health is constructive. Breadth is expanding, volatility is cooling, and dips are seeing measured buying. The setup supports participation, but with tighter risk controls than a full risk-on phase.
Market Breadth Composite
68/100
Above neutral. Participation is expanding across sectors.
Breadth Indicator
68 / 100
Above neutral, confirming broad participation.
Volatility Regime
Moderate
Suitable for staggered entries, avoid oversized bets.
Macro Drift
Stable+
Growth resilient, inflation not re-accelerating sharply.
Action Brief
- Maintain core equity exposure and deploy fresh cash in tranches.
- Favor sectors with improving relative strength over crowded defensives.
- Keep 6-8% stop-loss discipline until breadth moves into strong trend mode.
Sector Strength And Weakness
Rotation is visible. Leadership is moving toward cyclical quality while late-cycle defensives are losing momentum.
Sectors Gaining Strength
- Strong
Banking & Financials
Broad relative strength expansion
- Strong
Industrials
Order books and capex cycle support trends
- Improving
Power Utilities
Defensive cash flows with momentum tailwind
- Improving
Auto Components
Select names breaking out on volume
Sectors Losing Strength
- Weak
Consumer Staples
Underperforming on risk-on sessions
- Weak
IT Large Caps
Leadership narrow, earnings revisions mixed
- Weak
Traditional Telecom
Range-bound with low relative momentum
- Fragile
High-Beta Realty
High sensitivity to rates and flows
Strongest Now: Financials
Weakest Now: Consumer Staples
High-Conviction Stock Setups
Entries are defined as zones, not exact points. Follow staggered buying and respect stop-loss levels without exception.
HDFC Bank
Medium RiskCredit growth is stable while asset quality remains resilient.
Entry₹1,640 - ₹1,675
Stop Loss₹1,565
Target₹1,820
Horizon8-12 weeks
Larsen & Toubro
Medium RiskExecution pipeline and order inflow continue to surprise positively.
Entry₹3,520 - ₹3,600
Stop Loss₹3,355
Target₹3,920
Horizon6-10 weeks
Sun Pharma
Low RiskDefensive earnings profile with improving specialty contribution.
Entry₹1,640 - ₹1,690
Stop Loss₹1,565
Target₹1,860
Horizon10-14 weeks
ICICI Prudential Life
High RiskValuations have compressed despite improving product mix quality.
Entry₹615 - ₹635
Stop Loss₹582
Target₹710
Horizon6-8 weeks
Position sizing guide: low risk (4-5%), medium risk (3-4%), high risk (2-3%) of portfolio each.
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