Nifty's next support seen at 5034: CLSA
Laurence Balanco of CLSA says that below the August 20 low, the next supports are at the 5,034 and 4537-4700 area which includes the 2010 and 2011 lows.
August 28, 2013 / 09:40 IST
Here are experts’ equity calls for the day on how the market is expected to trade:
Laurence Balanco of CLSA: The daily RSI momentum indicator recently reached 27, a new low for the decline off the July peak of 6107. Although such a low level suggests that Nifty futures are due for a relief rally, ultimately it is bad news. Any relief rally in the coming sessions should be limited to a technical rebound back towards the 5587-5760 resistance zone before the downtrend resumes. Below the August 20 low, the next supports are at the 5,034 and 4537-4700 area which includes the 2010 and 2011 lows.Also Read - This market is not for the faint-hearted, more pain seen aheadBharat Iyer of JP Morgan: Our growth-based valuation model suggests that there could be downside of another 5-7 percent before value begins to emerge. India deserves to trade at a premium to emerging markets (EMs) for structural factors. But, we believe current valuation premia leaves no scope for expansion. Our portfolio stance remains biased towards global sectors and more defensive segments of the local economy. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
