Dissecting the behavior of the market, technical expect Ashwani Gujral of ashwanigujral.com says the trouble for market will come once 9000 level gets taken out and all those who looked at that level as sacrosanct will cut positions, which could lead the Nifty to the fifty-day moving average at 8750-8750.
The 30-share BSE Sensex down 317.77 points or 1.08 percent at 29,167.68 and the 50-share NSE Nifty falling 91.05 points or 1 percent to 9,030.45.
Any corrections to the fifty-day moving average is normal but in the process, a lot of bloodshed may happen because the market has got long positions on the wrong side. So, it is likely that levels of 8800 would come before 9500, he says in an interview to CNBC-TV18.
“The market could lighten up before it heads ahead,” says Gujral.
Moreover, the fact also remains that nobody wants to buy above 9000 because the earnings haven’t yet picked up. The global corrections could well shave off 200-300 points off Nifty but if there is good news then it could well take the Nifty up to 9500 in April.
When asked what should one look to buy in this market, Dipan Mehta Member BSE & NSE says one could look at retail NBFCs, private sector banks, consumer-oriented stocks in building material and appliances, select pharma, select exporters, auto ancillary – so the usual stocks that has performed well over the last 2-3 years.
One should look to enter on corrections into stocks where PEs that had gone to the levels of 2 or 1.75 have now corrected to 1.5.
So basically, go for secular growth stories, where earnings have been predictable and corporate governance standards have been good, says Mehta.
S P Tulsian sptulsian.com, Sanjiv Bhasin IIFL and Prakash Gaba prakashgaba.com also shared their views on specific stocks.For the entire discussion, watch video