We do not expect a win by Modi to move the markets up or have too much of an upside based on this news alone but a loss and upset from BJP could take the markets lower, says Nikhil Kamath of Zerodha.
During the week, almost all EMs saw outflows. South Korea, Taiwan, and India saw outflows in the vicinity of USD 600 million each. Outflows aggregating to close to USD 200 million were also seen from Indonesia and Thailand.
For a sustainable rally to take place, the Nifty50 needs to close and sustain above its critical resistance zone of 10,500–10,600 levels on the long-term charts which should open the doors for another 10-15 percent sustainable upmove over a period of time.
Watch accompanying videos of Motilal Oswal's Wealth Creation report event for a fireside chat with Raamdeo Agarwal, Co-Founder of Motilal Oswal and Sanjoy Bhattacharya.
The house was not so bullish on the oil and gas explorers but was positive on gas distribution companies & OMCs, said Manishi Raychaudhuri of BNP Paribas.
NMDC is a great buy even at current levels with a timeframe of over one year, says Sudip Bandopadhyay of Inditrade Capital.
The Nifty, so far, in current calendar year rallied nearly 23 percent and to take the rally ahead from here on needs a strong reason (may be one-sided win for BJP in state elections apart from corporate earnings and economic growth).
Ajanta Pharma retains the tag of fastest wealth creator for the third time in a row and Asian Paints is the most consistent wealth creator, said the wealth creation study
Going forward, 10,000-9,985 zone will act as a near-term support and any decisive closing below this level will trigger further pessimism.
Climbing back the hill is not going to be an easy task as there are multiple hurdles that await the Nifty, first is the 50 days moving average (DMA) of 10,190 and 21-DMA of 10,250.
Nifty is likely to outperform in this leg of the upmove than the Bank Nifty, says Ashwani Gujral.
While the feeling is that of a bull market, in the last six-months the largecap index return is not in commensurate with the mood of the market, said S Naren, ED & CIO, ICICI Prudential AMC.
BSE member sees the correction to be largely on the back of Gujarat elections and a possible year-end profit booking.
The overall structure is negative at the moment, and we may see some bounce back in the index as it is trading in an oversold zone on intraday charts.
Sunil Singhania remains optimistic about the market in the medium and long term.
Ajay Srivastava, Dimensions Corporate Finance Services says the body language of the RBI governor was not talking of an economy which is on a strong footing.
There are plenty opportunities which are there in the markets, both in midcaps and large-caps. Corrections like these give investors to capture the opportunity, he said.
The range of 10,000-10,300 levels will remain crucial for the coming week as indicated by option open interest concentration.
Motilal Oswal said that the outcome of the Gujarat elections will be a key trigger for the markets.
In an interview to CNBC-TV18, Madhav Dhar, Managing Partner at GTI Capital Group discussed fundamentals of the market.
It is clear that market is finding resistance in going down and if Reliance continues having couple of more good days then it becomes difficult for the Nifty to fall, said Ashwani Gujral.
The market is likely to stay rangebound until the time Gujarat election results are out; hence, a big rally or a Santa Claus rally might have to wait for another year
What should one bet on in such a scenario? Nilesh Shah is betting on recovery in 2018. Structural reforms will start playing out in positives.
It is approaching recent low of 10,094 forming a bullish AB=CD pattern. Breakdown from this support may drag the index down to levels of 10,008-9,900 which is 127% & 161.8% Fibonacci retracement levels of the BC leg respectively.
We expect some volatility around the budget as elections are a year away and major announcements will have some impact.