The valuation does look stretched in specific stocks which could see some more pain, but overall the markets is not in a bubble zone and long-term investors have nothing to worry about, says Porinju in an interview with CNBC-TV18.
Earnings downgrade to upgrade ratio moderated on a sequential basis (QoQ) as 65 companies saw earnings cut of over 3 percent (58 in 2QFY18) and 43 companies saw earnings upgrades of over 3 percent (49 in 2QFY18).
Infosys, Axis Bank, Kotak Mahindra Bank, HDFC Bank and Yes Bank traded in the green.
Overall benchmark indices have been in a tight range and that rangebound or consolidation is expected to continue in short term, experts suggest.
These companies, doubled their assets without much leverage and were able to maintain a double-digit sales and profit CAGR.
Pivot charts now indicate a key support at 10,386.57, followed by 10,320.83.
Maximum call open interest (OI) of 52.38 lakh contracts stands at strike price 10,600, which will be a resistance for February series.
Traders are continuously advised to remain light and should ideally avoid any kind of bottom fishing in the near term.
The flat close in US markets on Friday and holiday in select Asian markets (China, Hang Seng) on coming Monday indicated that India may start the week on a flat note.
Global indices projected a mixed picture as the US markets along with the Asian markets recorded gains in the week gone by. But the Indian markets including the Sensex and the Nifty remained flat as the Sensex could only manage 0.01 percentage gain while the Nifty was down 0.03 percent.
The index consolidated throughout this week, a pattern which is likely to continue in the coming week as well unless it breaks above 10,600.
The 30-share BSE Sensex was down 286.71 points at 34,010.76 and the 50-share NSE Nifty was down 94.30 points at 10,451.20.
The Nifty Midcap 100 index which was seen outperforming in the early part of the week is witnessing heavy offloading in the past two trading sessions.
Maximum call open interest (OI) of 52.7 lakh contracts stands at strike price 11,100, which will be a resistance for the February series, followed by 11,000, which now holds 49.96 lakh contracts in open interest, and 10,700, which has accumulated 37.88 lakh contracts in OI.
About two shares declined for every share rising on the BSE on Thursday.
For bulls to regain control of this market, Nifty should reclaim 10,600 levels to extend its upmove towards 10,700-10,800 levels. A tight stop loss below 10,398 should be kept for all long positions, suggest experts.
‘Stay away from PSU banks’, which is the word coming from experts on D-Street. The concern of most analysts is that nobody knows if it is the beginning or the end.
Traders are advised to stay light and cautious as the index could well swing in either direction.
Traders are advised to stay light and cautious as the index could well swing in either direction. It witnessed a short covering rally on Monday but a sharp selloff on Wednesday could well put bears on the driving seat.
Fund managers added as many as 9 stocks to their portfolio for the first time which include names like Orient Electric, followed by Amber Enterprises India, Galaxy Surfactants Ltd, Newgen Software, Emami Paper, Nath Bio-Genes, Apollo Micro, HOEC, and Pilani Investment.
The revised stressed asset framework would lead to accelerated and early recognition of NPAs in the banking system and would require higher provisioning expense, suggest experts.
According to Pivot charts, the key support level is placed at 10,498.3, followed by 10,456.8. If the index starts to move higher, key resistance levels to watch out are 10,568.4 and 10,597.
As we are near the fag end of the earnings season and most of major corporate earnings already priced in, and no major event lined up in the offing, the market is likely to take cues from globe, according to experts.
As emphasised by a pioneer of value investing, Warren Buffett underlined the basic fundamental of staying invested for a longer duration and keeping heads away from the short-term market fluctuation.
“Albeit Nifty50 registered a small bullish candle it appears to be on a pullback mode after testing its 100-days moving average (DMA) in the preceding two trading sessions of last week,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.