The market showed signs of consolidation on the last trading day of the week with Sensex and Nifty both closing at two-week lows.
The market looked a bit nervous on first day of the earnings season. Prakash Diwan of Altamount Capital Management says that is quite natural.
Ashwani Gujral of ashwanigujral.com is not too perturbed with this correction and says won’t take the Nifty breakdown below 9172 very seriously because it was led more due to subdued numbers from Infosys. On Monday if IT does not fall as much then Nifty could find support, says Gujral
Market will trade in a range and remain sideways because one good or bad result can take it up or down 40 points, says Gujral.
One can do sector specific shorts but not across the board,says Gujral. Short trade will come when 9000-9050 gets taken out. So, still a buy on dips market; even if 9150 is taken out 9050 is a good support, says Gujral, adding that it remains a bull market.
According to Sanjiv Bhasin of IIFL market looked frothy at 9200 and it was a good time to raise cash. Best of the earnings too are priced-in. However, next fortnight one could see more disappointments than upside and Nifty can trend lower. That is the time to buy into stocks and indices.
When asked what is good to buy in this market, he Bhasin says with a strong rupee, banks are in a sweet spot. Consumer durables and power equipment space also looks good.