The point I made yesterday was that yesterday was the best chance that the bulls had to really seize control of this market and take the Nifty significantly pass the supposed halt of 20-day moving average.
The market was closed to support mark, the India VIX was at highest level and I think this market has given you tradable correction and is now ready to take the shorts just out of the system.
In the new segment 'Inflection Point', CNBC-TV18's Anuj Singhal flags off an interesting stock in action. The stock on radar today is DHFL.
If you have been short may be you would just want to take your stop loss now to around 10,200 and see if this market still has legs to go as far as the short side is concern.
This has been a tradable correction because the markets were making lower high and lower low.
I think this is a correction which was tradable because yesterday the first indication came when the markets made a new lower high in the first hour and after that started drifting lower.
Goods and services tax (GST) will have its impact but the overall market mood is changing a bit.
Overnight as US market has a fall because of what has been happening politically and Trump’s Tax reforms getting a bit of a jolt and I think when the mother market sneezes others catch cold and that is what has happened with other markets as well.
The Jet Airways stock has been flying high off late with 80 percent rally so far this year. CNBC-TV18’s Anuj Singhal has drawn up a contrast with Interglobe Aviation to see how the valuations stack up and to find out if the Jet Airways stock is on an inflection point. Watch video for more.
The market is at 20 day moving average between now and 50 day moving average you are getting another good opportunity to accumulate good stock.
My sense is that at some point today the market should bounce back maybe in the second half, so this is still the market in which you buy the dips.
This is a big bull market and the liquidity is plenty, the foreign institutional investors (FIIs) have also started to participate, you have to participate in this market.
Watch CNBC-TV18's Anuj Singhal giving a 360 degree round up on ONGC.
My big point now is look at growth, look at the way Amazon added USD 60 billion of market cap in a single day.
What a phenomenal day we had yesterday if you are looking at the Nifty and the midcap index and it was on expected lines – the 3pm move would have happened yesterday courtesy HDFC.
Buying dips may work
Reliance Industries Ltd is now the Virat Kohli of the team, it is performing almost in every innings and that is what Reliance did yesterday as well and was the largest contributor to the market but the other thing which happened was that the market got support of lot of other heavyweights.
Clearly, the corporate facing banks, ICICI Bank and Axis Bank are going through second round of virtual de-rating and add State Bank of India as well to that list.
The market is in a well-defined band now, though bulls are in control and it now looks a matter of when and not if Nifty breaks out and goes to its all-time highs of 10,175 and probably even higher highs, it is just that it lacks trigger but the trigger would come.
Important week for the market, I am a bit perplexed by the SGX Nifty, why should it be down 40-50 points because there is no major negative that I can see except of course if the market is worried about the fiscal impact of the goods and services tax (GST).
India has rallied one percent but we are now the half of the global markets but that hasn’t stopped the midcaps from rallying.
Today is likely to be a good day for the market. I know the SGX Nifty is telling you that the market may open a bit soft.
Today the big cues would be A) In the first half how does the market react to the fiscal stimulus, there has been Rs 2 per litre cut in petrol and diesel and B) Is there going to be a monetary stimulus as well thrown in at 2.40 pm or 3 pm when the Reserve Bank of India (RBI) announces its monetary policy?
The domestic cues also look quite decent with the auto sales.
Ask yourself a question - on expiry day what is the trade. On expiry day if the market is trading at the lowest level of the series, who is gaining and who is losing and what is the trading psyche.